Need advise ref. plans for a rehub / preparation to apply for a HML

[Joanne Basecki]

Considering the plan below what are my chances (or anyone else's in similar situation) to obtain the 70K HML. Thank you in advance for a possible input/advise.

I got an accepted offer to purchase a 4-unit bldg in Humboldt Park, zip 60624. I have some initial estimates for the rehab. (I am also inspired by a few ideas as to revitalizing the area, particularly my block, without much cost). Here are the numbers and the plan in general.

- purchase - 70K (It should appraise as is for 90K, considering 23K per floor, as per comps, and there are no liens)
- I have 30K of my own money to invest in the rehab
- I also have another 10K for initial costs of the loan, closing, attny fees
- Thus the initial total comes to 110K

- closing - Dec. 15
- after the closing, still during Dec,I want to change the roof, check heating and plumbing and secure the bldg before winter (This might take up to 10K of my own money, leaving me with 20K for the first payment to gen contractor, see below)
- title insurance and hazard insurance will be in place at closing

- January 5 - will perform a new inspection and on Jan 9 my attny will present my renovation plan to the city
I plan to convert 4 illigal condos into two duplex apartments.

- January 10 - the rehab will begin with the initial 20K payment to contractor (my own money, not a loan)
I estimate the time line for 3 month and the total expense for 80K (including the mentioned 40K) However it might go as high as 100K. Thus there will be up to 80K due to contractor at refinance or sale.

- April 10 - the construction ends. I plan to sell each duplex for 150K, or refinance. This will bring in 300K, minus 170K or even minus 200K in pay backs. I should be left with about 100K profit.

I would be grateful to all who would point to my planning mistakes. Thank you so much.