On my way to start on our first property!

[Jorge Retes]

My business partner and I might start on our first home renovation (fix/flip). I have a cousin who owns two properties, the one he lives on and the one he is currently renting out (the one we are flipping)(note-he is renting it to family who know what we are planning to do). The property is in a distressed situation and would definitely need a remodel to sell for retail value (we might have to move some walls around to make the property more desirable). the property is around 60 years old with 995 sq. and around 400 sq unpermited on top of that and there is a mortgage of around 255k on it. The CMA of the property would be around 430k-450k looking at recently flips homes close to the property (not counting the extra 400 sq). we talked to other investors and came with a rehab cost of 50k give or take, again this is our first work so we might be off by more than we would like to. the Owner of the house seems more than willing than to finance the project 100% by either using his business credit or even taking a HELOC on the property we are flipping. We are also planning on doing our own subcontracting (no GC). giving the nature of our cousins business we are using many of his connections as our subs, (he owns a waterproofing company.)

-what are you guy's thoughts on opening a Heloc on the property we are fixing to help with the financing? has anyone ran into issues trying to do this?

-since we are doing our first subcontracting (which i have never done) anyone have any tips for a newbie like me? 

-is there anything else that i might need to know which i am over looking? other than disclosing the 400 sq that are unpermitted, should i be worried about something with that?

---there is just so much running through my head about how to make this go as smoothly as possible, this will still be one fun learning experience!