With comps ranging from $875K-$1M and your estimated build cost at $550K, the after-completion value gives you a significant equity cushion, making this project highly attractive to lenders.If you plan to hold and rent the property, you could refinance into a DSCR loan after construction, which bases lending on rental income rather than personal income.

I will update my reports to federal law enforcement about these activities once I have completed debunking all of his new claims.

@Alec Barnes As the owner of a property management company in Texas, I completely agree that a solid screening process is essential for placing quality tenants.

It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees.

The reference VP sounds fantastic though!

I spoke with a representative from Elite and everything sounds good.

This doesn’t necessarily sound realistic in a real world scenario. 

Makes complete sense to purchase a property that breaks even or loses money.

Slightly increased the offer to quickly go under contract, but still had inspections and everything done before completing the deal.

In your case, it sounds like a similar story.. you identified a property with potential, tackled the structural work, and brought it back to life in a way that justifies a higher price.