Working on my first deal, Need your suggestion,Cash buy Finance?

[Brad Fausett]

Hi Guys,

I am new to the forums and am currently working on my first deal.  Here is the scoop, we found a home that we thought was currently owned.  Come to find out it is sitting empty and has been for awhile after a foreclosure.  I have pulled the comps with my realtor as well as done my own research and found this home will meet the 70% rule.  Here is the breakdown.

-1500 sq ft Home with 500 of finished attic space we plan to have included.  Over 50% is higher than 7' and will be finished out the same as rest of home with full bathroom.

- Neighborhood averages $136 per sqft for run of the mil homes, comp homes, modernized run on average of $165-$185.   We have 3 immediate, recently sold homes that were 1800-2000 sqft that sold between 250k and 290K with similar finishes done.

-I think i can get the home for $75k.  I have walked the home several times plus with my contractor.  I have put together a rehab budget of $128,500K.  I honestly think I can do this project for $100K Max once we get started.  I am know to drive a good bargain, while keeping contractors happy.  ( I own a non related business that utilizes sub contractors from time to time.)

-All said in done, at 128,500 I am meeting the 70% rule, anything below that will be on top.

Here is my dilemma where i need your experience. I am short on cash on this deal. I have 80K on hand my self, should i use my 80K to make a cash offer or should my offer be contingent on financing which i know without a doubt i am eligible for. The home is being sold thru an auction an I know cash appears much better in this situation. If i use up my cash then i will need to take a mortgage on the house or a heloc. I have reached out to a few potential PML but since there experience with me is still new I am not holding my breathe here yet. HML is too expensive, i will find other creative ways to get the deal done. Thoughts on cash offer or financing?