New Construction for a Beginner

[Shane Edwards]

I purchased a Fix and Flip investment property in Tampa. It is a 100 yr old bungalow that after an interior demo I have found that renovating this home is not the most cost effective exit. I am currently in search for my best option. A teardown New build is the best scenario, this will create a modern open flor plan and added square footage, but finding a lender that will work with me is not easy for 2 reasons, lack of new build experience(none) and the numbers are a little tight. I purchased the property in an LLC with a hard money lender. I was wondering if I could purchase the property in my own name for a new construction loan for personal residence or second home as I will be more eligible for an FHA or conventionial New Construction loan. I'd be more interested in new build as an investment property than personal property.

I have about $250k into the property now. I found a local builder that told me he could build me a New Construction Block home for $200k, 1600sqft, 2 stall garage, 3/2. This should ARV at roughly $500k minimizing losses, ideally this is the route I'd like to go. As I had mentioned qualifying for the loan I need is a struggle with my lack of experience.

I'm also open to suggestions on a different exit plans for this project as well.

Thanks in advance for any insite on this!