3 family rehab investment advise

[Account Closed]

Hi all,

I’m new to real estate and could really use some serious advise on how to proceed forward with my first rehab project.

I have a paid off 3 family in Boston that appraised for 685k. I took a 245k equity loan out for a full rehab. Ran into a bad contractor and lost money and time.

I got a good GC on the project now but it’s costing more than I have and I can’t refinance because the 1st and 2nd units have been demolished.

The quote for the GC is 260k with 5 month competition time frame plus another 100k for ultilities (plumbing, electrical, hvac, sprinklers) 360k total.

I have 165k in the bank and currently maintain a 75k salary position with a perfect credit score. 

My question is, considering the following conditions what is the best course of action to take? Should I seek a private lender to pay off the cost so that I can Refi once the ARV goes to 800k or is this getting too risky to the point where I should scrap the job and do the bare minimum?

Thoughts??

Kind regards

[Ann Bellamy]

Without knowing the specific property, no one can give you a realistic solution.  The time frame, @Charlie MacPherson, may have more to do with utilities and permitting than actual construction, just a guess.  

Your lending options are going to depend on where the property is, the current condition, the ARV (why only 800K, as Charlie mentioned?) and most importantly, whether the equity line is secured by the subject property or by another property.

I know we are giving you sort of non-answers, but there isn't enough information to give you real answers.  So if you wish to PM or call we can talk about it.   But of course, if you have friends and family to help you out with the additional 200K, that's your least expensive option.