I’m a Realtor who has just come across a really interesting find. Someone purchased a 1000sf home in a decent area and started an addition that has increased the SF to 2250. It is framed out, and all the rough electrical and plumbing is already done but that is it. They have run out of money and are selling the place as is. All the architectual plans are sitting on a table to look at.
I’ve personally renovated 3 houses doing most of the work myself and farming out what was beyond my scope. I’ve always used conventional lending but for this deal I am leaning towards HML. I am having a contractor come over to look at the property in the next few days to A) look at the quality of work that was done…(all the permits have been pulled) and B) get a realistic price and timeline.
If I can get this property for 190-195, (they are asking $210,000) the comps suggest that I would be able to sell it at $340,000. As a realtor I know I have to price approx 5% below market to get things to move in todays climate. Seems to me…just from what I’ve been reading, this could be an excellent deal for HM, depending on what its going to cost me to finish.
Any advice from you pros out there? Things I should do to make my first HM deal work? Things to look out for? Avoid? Am I missing anything???
Thanks in advance for the imput!