To Sell or to Rehab and Hold - Advice Needed

[Ellie Johnson]

We bought a property for $160K with a $226K rehab budget. After sinking $66k into it (demo and site prep) our GC left. New GCs and bids for the property show our previous GC SEVERLY under bid the project. To finish it will cost $370K (+210K). Right now the ARV is $600,000; with the Residential Infill Project in Portland, it will allow us to increase the ARV to around $750,000 by converting the house into a triplex. Our funding is basing the financing on 80% of the current appraised value of $600,000, loaning $480k. With all costs factored in (purchase, finance, holding) we will be all in for $625,000. This means we'd be leaving $145k in the deal. In the long run the value will be higher, and the area is also improving. The lot is large and we could add more ADUs onto the property to increase value further, but it would be a very long term play and will require us leaving the $145k invested in it for quite sometime. The other option we have is wholesaling the property now. So far the best offer we have is $190K which means taking a $40K+ loss right now.

Wanting advice, thoughts, ideas and input.

Thanks in advance!