Significant rehab with lot bifurcation

[Nagendran Manidas]

I found a property in Austin area with a good 7000 sqft lot and a single family house built in 1950's. Planning to buy it in cash and then build 2 site condos (each of 1200 sqft). Numbers I ran seem to work for this with a good appraisal end of rehab taking into account demo, permits & constructions. What do you guys think of such kind of rehab?  Also what kind of financing I can get for this rehab project, given house and lot is bought with cash?

[Aaron Gordy]

@Nagendran Manidas Sounds good but I am a little confused. A rehab is different than a new build. There will be different costs associated with each project. It sounds to me like you will be scraping the old house and building two houses on it. You should talk to an architect on the plans. Talk to a community based lender too. If you buy this lot cash then you should be able to use the equity to build but that is a lender specific question. And most definitely talk to a real estate broker or agent to run numbers to see what the highest and best use for that space will be. Sometimes it makes more sense to build a sfh vs a two house regime.