please help. im super scared.

[Eli James]

hello. i need some help with this. ok, my neighborhood i grew up in has had a complete makeover in the last decade. the side of the street wherre i used to live is the only section left with the original houses. my mother has lived in the house by herself last 6 years. the house burned down last year. now its just a open lot. houses in the neighborhood are going for 380k for houses 2000 sq ft. (29407). beautiful crime free area minutes from downtown Charleston and beaches. prime. my mother will sell the property to me for 50k. i found a builder that can build for 170k. so my understanding is that my mortgage would be 220k if im not mistaking. im trying to pay my mother through the mortgage. i need to know the best way to play this because there is going to be instant equity but i know there is a better way to do this. just not that educate yet. a better way to leverage it. shooting for 3 bdr 1.5 ba. thats what is was before the fire. built 1971, 1275 sq ft, appraised for 250k year before fire. need help. there are two houses in the neighborhood of our rental property that are not on the market yet. numbers on them look great. appreciation potential, equity, and great location. owners willing to work with me. i can really use this potential equity for these great opportunities. we have saved nearly 20k. need some help. wwyd???

[John Semanchuk]

Hi Eli, 

I'm trying to understand your situation fully but Mary's advice is a good start.  Make sure you understand the full cost of the build to begin with.   Also, building a house in that price range, you should consider at least a 3bdrm 2 full bath house.  It will be a good bit more valuable than a 1.5ba house and not much more to build.   Contact me via private message if you'd like.   I've lived in Charleston 35 years and have a couple of investment properties in 29407.