Moving a House - Am I crazy?

[Birtha Wall]

I am in my 2nd live in flip, and so my financial resources aren't available until the renovations are complete and we can get a HELOC. So I have been trying to get creative.

I found a home (not on the MLS) and it is $40,000 (yes that is what is thought too). The catch is, the homeowners want to keep the property, and want the buyer to arrange and pay for the cost of getting a company to move the house. I looked around and found a lovely country lot that is very reasonably priced at $95,000, services at the road. And this lot has the zoning to be severed. If the lot was severed, and one sold, it could pay for the cost of building a basement foundation on the 2nd lot (Even the severed lot could likely get $70k-80k in this area). The lot would still need septic, and the house looks like it would need some new windows, and maybe new or painted siding, but otherwise is quite nice. I have a family friend that did this with their property, and other than a few minor hairline cracks in the drywall, it was totally fine.

I am just researching at this point, but am I crazy for considering this? A 3bdrm/2bath on a country lot in my area is going for an average of $300-$350k. 

Costs: $40,000 (house), $95,000 (lot), $45,000 (moving estimate + permits), $60,000 (foundation estimate), $7,500 (septic estimate), $2,000 (windows at contractor price, we install), $10,000 (optional - finishing the basement, we do the work) = $327,000 Initial Costs. 

-$80,000 (selling severed lot) =$247,000 (total costs after selling lot)  and a sale price of $325,000 (Estimated)

=$78,000 profit (estimate)

This is rough math, so please point out anything glaringly obvious, I would offer well below asking for both home and lot and anticipate counter offers. But am I crazy? Has anyone ever done this? What are the financing options for a lot? I would be willing to approach a private lender about this since it is lower risk.

Does a house that needs to be moved have different financing options than a regular house would? 

[Jaysen Medhurst]

@Birtha Wall, I love the outside-the-box thinking.

There are a lot of moving parts here (no pun intended). If all goes to plan you're looking at an 18% profit margin, which is pretty good.

My thoughts:

• This is a whole lot of stuff you've never done before--a lot to bite off--so proceed with caution.
• First off, you ran your numbers using the high end of the ARV, that's a recipe for disaster. If you only get $300k, that's ~$35k profit. You could spend that in the blink of an eye.
• I think you're going to have a lot more renovation costs than just $12k. You need to hook all of the mechanicals back up. I assume you'll need a new furnace and HW heater. There's going to be damage during the move. Plus this is the kind of project that is just begging for scope creep...well, we have the house off of the foundation, why don't we insulate the joists...since we insulated the joists why don't we...
• How are you going to finance this? I can't imagine this is done everyday by your corner bank. 
• What kind of insurance is required?
• What's your back-up if there's a major problem? Like the house is damaged beyond repair or something on the route was missed and they can't get across a certain bridge.