New Roof, New Windows, Paint interior/Exterior, New Appliances, New Garage Door, New Fascia, New Fixtures (Bathroom and Ceiling fans), Electric Service Upgrade, 1204 Sqft, built 1960.

The only thing I don’t do is electrical work.Now that I’m in the U.S., I want to focus on house flipping as a way to break into real estate investing.

I currently am a resident here (so distance is non-factor) and I possess some handy skills that could save renovation costs (besides HVAC, structural issues, plumbing, electrical work).

A year ago I recently purchased my first multi family to house hack and I rant into a issue when the seller paid for a electrical upgrade to the home.

There has never been any sort of lease signed nor has she ever paid anything more than a few electric bills which are next to nothing since he has solar. 

I updated the electrical, painted everything, and “cleaned the property up nicely” exterior and interior.

Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?

Permits are basically only pulled for electrical and plumbing of if they get caught.. its the only way to make the rental houses cash flow in many of those markets.On top of that licened contractors many times simply wont work on those type of properties there is no money in it for them..

Each of the 5 warehouses on this campus will require updates (construction of offices/bathrooms, roof repairs, paint, siding repairs, new penetrations for doors, updates to electrical, insulation, and extension of water and sewer). 

For example, it's difficult to appease a situation if 1 tenant claims they're using less electric/gas than another.