Waterfront Lake property - Land Sale - with not livable house

[Michael Orozco]

Hey all,

I have been looking for a nice lake front property for years, and I finally found it. However, it is unusual.

The lot is beautiful .75 acres waterfront that has a nice creek that runs down the side. 

There used to be a house on the lot, but a previous owner gutted the house, and apparently either didn't have the know how, or the money to complete the project. So he is selling the property as is land. The price of the property is worth just the land price.

However, the house structure that sits on it, is in very decent shape. It has "Good Bones".

I just happened on the property and don't want to let it go, but I would like to save on it as much as possible. 

It is smaller and I was planning on building an addition to it.

My biggest fear right now is to buy this lot is having two mortgage payments at the same time, because it would take a while to build the house on it.

I have around $45K cash that I can use up front. A friend of mine told me, he thinks the easiest solution for me would be to buy the property just as a land loan. with the $45K, build an addition or Garage/Apartment next to the old structure. Once the addition  is complete, with water, electricity, and sewer, then sell my house, and use the money that I get from the sale to finish up the house? While I would have a two mortgages, it would only be for a shorter time period. 

Here is where I am confused. 

What options do I have? 

HELOC, Land Loan.

Also, can you have multiple loans? 

I was hoping to have the land loan and the HELOC loan seperate.

My thought was that once I have the Addition built and self sustainable, that I could sell my home, pay off the HELOC loan, and just have the mortgage on the property. Then gradually, I can do the reconstruction of the house when I have time. Plus I will have money from the sale of my house left over to do more work.