Rehab project.

[Eric S.]

I am looking to purchase 2/3 unit home. It is in good area. The main house is about 1200 square feet and is technically 2 units. There is 2 bedroom 1 bathroom on first floor that is also zoned for commercial to be used as offices for business. There is stairwell that can be sealed off that leads to studio space with its own fire exit steel stairwell. 

Now there is back carriage house that is about 600 square feet with 1 bedroom and 1 bathroom. 

Updated units in the area rent for $800 conservative. Apartment complexes across the street where there are little bigger rent for 1,050  a month for one bedroom. 2 bedroom rent conservatively I am thinking of $1200. Studio think I could rent for $600 conservatively.

I am thinking of living in one of the units and using fha 203k loan also thinking of the doing rehab investor loan with 15% down. List Price is 175k. I have not had contractors bid on it, on to that later.  I am thinking on high end of $50 dollar square foot rehab would be about 90k so all in about 265 I am thinking . Property taxes are low at 3k a year. Homes in the area that sold recently are selling for $150-180 per square feet. Most are single family homes though not many duplexes that have sold recently. 

Now my questions

What is the best way to submit and offer to give me maximum time to close and allow me options to get out. 

Reason why I say this FHA can take a long time and I do not know exactly costs to do the project. Also seems like its pulling teeth to find contractor properly bid this out ( I know this is still part of busy time of the year).

Also what is best way to get contractors to bid and to speed up bid process. Another reason why I want as long as possible becasue contractors for project like this can take couple weeks to get bid back and I want submit offer asap for this. 

I tried to do FHA loan on another duplex earlier part of the summer reached out over 10 contractors and maybe 5 came out and only 2-3 actually got bids which were high ( I am thinking all of them were busy). I ended up scraping that deal because costs were too high for what I want do.

I am use to being my own GC and bidding things out and overseeing most of my stuff is light rehab. But with a loan I have to use licensed GC which is fine but i know costs will be much more and although its my loan not technically the boss. Easier get electrician and HVAC guy I know to bid out project and cut out middle man than to have GC contact all these different people for bid if you catch what I am throwing. 

Also another reason want buy some time is to look at other banks. I have preapproval for 203k from bank but after really realizing in experience with inexperience with 203k loans I am hesitant as well as the fees they are charging. They use service that they outsource the 203k part out. 

Well here it is. Let me know your advice and what you think of the situation. Thanks!

Cheers!