Need Advise on Money Pit - Should I Sell As Is?

[Delicia M.]

I purchased a 3 bed/2 bath bungalow one year ago for $20K with the intent to flip.  The home is located in a part of SC that's hard to find available contractors or help. After a month of searching, I found a unlicensed person to add a 1/2 bath, gut and renovate the entire house. He does great work but he works by himself or sometime with his nephew. The house is 90% complete and I've ran out of money. The supplies are there but the house still need things such as kitchen cabinets, floor tiles, and door knobs throughout as well as re-bricking around the bottom of house.  The comps are $135K - $155K. To date, I've spent approx. $85K, including purchase.  Now I'm broke! Should I sell the house as is or should I try to secure more funds to complete the project? Thanks for any advise. I'm feeling overwhelmed. 

[Will Barnard]

What was your original renovation budget and if you have one, supply a line item budget with it? You are now into it for $105k plus misc holding costs. If you can get $145k for it, then you can still turn this into a small win for yourself and a bigger win via the experience you gained.

At $145k resale value, you should expect about $10k in resale costs (agent fees, closing costs). So if you need to put in another $15k or so, then you still come out positive depending on your holding costs (do you have debt service?).

You will likely be ill advised to sell as is as opposed to finishing it and getting full retail value so if I were in your shoes, I would get the rest of the money needed and finish it, this advice does come without the benefit of all the details so keep that in mind as well.