I have been in the middle of a fix and flip in Atl for the past year that we bought for $275k and now I have to sell it. Long story short, the engineer that worked on the project did not get the proper permits while we were building the home, which has been framed, now it has to get torn down and rebuilt. When we started we knew the property was in a flood zone but later found out it was in a flood plain zone and the property has to be raised 3 feet above the flood line. The hard money lender does not what to loan the extra funds it will take to remove the framed property and rebuild the property 3 ft higher. We had an appraisal done a few months ago showing there is still a profit to be made. The rebuild would cost around $275k and the appraisal came back at $710k based on a 3000 sq ft home. I am currently pursuing litigation against the engineer, but I can not cover the added cost to finish the project. I am willing to sell the property and move on. If I can't find other investors to come in its looking like bankruptcy is my next step. Any other ideas on my options would be very helpful.
