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Updated over 3 years ago,
Should I buy the duplex if it affects the construction project
Hi, I’m new to Bigger Pockets and real estate investing. I was hoping someone could guide me in the right direction with my dilemma.
Background:
This year I had sold my family home and used the capital to purchase a good cash flowing single family home.
I also used the capital to purchase a $110,000 vacant lot for the purpose of constructing a vacation rental. My intention is to use the $110,000 spent as the down payment for the construction loan. I plan on starting the build in the new year if the weather permits.
I now found a duplex which I believe can cashflow over $1000.00/ month. I had no intentions of investing into any further real estate until the construction is complete but the numbers look too good to ignore. My fear is that if I purchase this duplex, the construction loan will fall through for the vacation rental being built.
Am I right to think that there will be issues with the construction loan? Or will the lenders look at the duplex as an asset (once occupied by tenants)
I’d appreciate any feedback. Thank you for reading my post :)