Flip, Buy and Hold or Pass?

[Bruno Nunes]

I was offered an off market 1 family that has 6 bedrooms and 3 baths but needs to be totally renovated. The house is in an area surrounded by multi family homes and after checking with zoning it’s zoned in a multi family area also. It needs to be converted to a 2 family but due to no off street parking it will require a variance, blue prints, survey, and an engineer in order to have a chance at converting it. The property needs about 120k for rehab costs and purchase amount is 110k. All in 230k and comps for 2 family homes are around 320k to 340k.

Here's where I'm wondering if I should pass or flip or even buy and hold. The market is so up in the air and we don't really know if those same resale values will be there let's say in 8 months. Assuming it trends downward a little would you do this deal knowing rehab will take 4 months and by the time you get approved for the variance and meet with the board it could be another 3 months meaning total time spent on this project could be 7 to 8 months before you could resell it for profit? Deals are few and far lately so I feel like I should do it but it's going to be one uphill battle and by the way There is a chance it does not get approved for conversion which would than be a value of 250k on a newly renovated SFR. I would break even if it got denied but on the other hand it could be a great pay day if the conversion gets approved.

What say you BP community? Deal or No Deal??