Hey Remona sorry to hear you are dealing with this situation and hope you figured it out! I would have going back to the HML as last option. In my opinion it looks bad for any investor to go back to the lender seeking more funds for a project. If I were in your position I would
1.) Join many forums and FB groups looking for a partner and or someone to wholesale this deal to
2.) Seek a private money lender
3.) Get multiple bids from other contractors, and or I don’t know your experience but give thought to being your own GC. It may be hard because the size of the rehab but get an GC to give you an itemized list of repair cost for your rehab and sub out the items you feel can be done cheaper.
4.) I agree with others instead of making the extra room / bathroom possibly consider just rehabbing the property as is
Also, as stated already we have all been in your situation before one way or another. In the moment I understand it’s stressful but you will look back on this day seeing it as an blessing in disguise! These moments are what teach you the most!
Rooting for you but even if you break even on this deal, you still will be a winner in the knowledge gained!
Good Luck!!
