Denver Flip Not Selling - Options?

[Jamie Salyer]

Hello! Thanks in advance for reading, this is my first flip as the owner in 10 years (many more as a broker).

Due to a number of hurdles, my flip in South Denver (University Hills) took a 2.5 months longer than planned and about 10k over budget. October 1 kicks in the 7th month with our hard money loan and the mortgage goes way up. It has only been on the market 12 days but the Denver market has cooled slightly and I'm starting to look at my options (and feeling a bit scared.) 

The remodel is absolutely beautiful! We converted the 1 car garage into a primary bedroom suite, upgrading it from a 2/1 to a 3 bedroom 2 bath. Because of building codes that we didn't know about, we were un-able to get permitting to build a new garage or carport. This has been the biggest feedback issue from the people who have seen the house...they want a garage.

I need to payoff the Hard money lender -$500k

Originally the ARV was (appraised) $670k but its cooled and is more like $625

I used the rental calculator - $2500

I do not want to pay Nov. 1 mortgage with the increased interest, so if we don't have an offer by Oct. 1 I'm thinking we should rent. Unfortunately, to re-fi at 75% of the amount of the value of the home, the numbers don't seem to work. 

Any suggestions?? Thank you SO much!!!