Yikes, Am I in over my head??...Any suggestions to save this deal

[Remona Castle]

I acquired an off market property a couple of months ago. Its a SF home, 3/2/2, 2700 sq ft on a large corner lot (3/4 acres). Loads of potential. Estimates from two different GCs showed rehab cost at more than twice what I budgeted for (170K). I am in a HML and the monthly payments are up there. I am getting nervous because I don't have enough cash to cover costs. Any advice on how to save this deal. Here are some stats: Purchase - 260k; ARV 500k; House needs a little of everything and a lot of some and to get max ARV, leverage current square footage add a bedroom and bath, making the home a 4/3/2; with two master bedrooms. Any suggestions on what to do to save this deal....

[Remona Castle]

Hi All! 

It's been a couple of weeks since I last responded. Wanted to first thank you for sending so much positivity and suggestions on how to make this project work.  I thought I would come back and provide an update....Biggest change, went from a fix and flip exit strategy to a Rehab, Refinance, Rent exit strategy.  Huge difference for me....here are a few steps you all help me with and how that went....

1. Reached out to the HML - they had no flexibility....probably because I am currant on the loan and they are not missing a meal yet (ha!)....either way, this will be a factor to consider when looking for funding for my next project.

2. Really considered GCing his project. I just don't feel i am ready to do that right now......but I met a GC who is willing split the role with me to reduce my cost. I do some and he will do some. We have to be very clear in the contract, which we are working on now, but i like the flexibility he is showing and I will learn a lot from Him I bet!.

3.  Decided to keep the conversion. The square footage is already there and it will add so much more value for project as a rental.  

4. Switching to a rental, is allowing me to save on some of the finishes.  Also, there is some extra work on the outside that is definitely necessary for the project if I were flipping it, but as a rental, I realized that work is not necessary.....this was a huge cost savings.

My new budget is still a littler higher than planned, but within reach. I have family who are on standby to help financially in case something out of the ordinary comes up. I hope I don't have to use them, but glad to know they have my back.

Thanks again to you all for helping me settle down and get creative. I APPRECIATE YOU!

To all Veterans in the group - HAPPY VETERANS DAY- THANK YOU FOR YOUR SERVICE!

Warm Regards,

ReMona