If you do find something that has a good location in hampton roads but it was on fire, flood damage, just hideous, become a visionary and close your eyes and imagine what is possible if you just throw in a low ball offer and use a rehab loan or equity loan to rebuild it into a fancy high renting home.Areas undervalued people don't talk about but from my experience are HOT HOT HOT.

Being that gary is like you have to completely rebuild the house.

We have specialized in New construction and tear down/rebuilds for the last 20 years. 

I need to look at how quickly i  can rebuild those reserves with the increased net and decide.

Purchase price: $105,000 Cash invested: $109,000 Sale price: $270,000 2/1 at 644sf, [tear down/rebuild] converted to 2/2 at 942sf (New Framing, plumbing including main, roof, septic, hvac, foundation addition, grading, all new electrical, pocket doors, appliances, fencing) What made you interested in investing in this type of deal?

“Good Thesis” for Single Hard Money Loan: Borrower: Experience with multiple flips in target marketBut… doesn’t have more than a handful of flips going on at any one timeFlip is next logical progression:Example: Flipper used to doing SFH in a given market for past several years is doing a slightly larger project, or scaling to do two simultaneously.Example: Flipper used to doing SFH in a given market is not progressing from small fix and flips to a $2M luxury quadplex ground-up development in one jump.Flipping is the borrower’s full-time jobOr, their single side project in an otherwise established careerFlipper does not have 10 other projects going onBorrower has established contractor networkBonus: Has established contractor skillset and licenseBonus: Has deep experience personally remodeling flipsBorrower personally guarantees loan:Has material assets and net worthIs not highly leveragedHas a cash flow positive lifestyleDeal: Close, clear comps support both acquisition and disposition priceProject timeline and rehab plan is detailed and specificBorrower is willing to loan disbursements staged upon completion of clear project milestonesBorrower has procured binding quotes from contractors regarding scope of flipLoan is no higher than 80% loan-to-cost, and 70-75% of Loan-to-ARVBorrower is putting some skin in the game:Borrower’s equity is not just them buying the property at a discountBorrower is committing at least 10% (preferably 20%) of project cost in cash from their own personal accumulationTimeline is as tight as possible:Cosmetic Flip is less than 3-5 monthsMajor Rehab is less than 1 yearScrape and Rebuild is less than 18 monthsLonger timelines = more conservative Debt to Equity

My State Farm quote (who I have my personal stuff with too) came in at the same premium amount and will insure at 100% of replacement/rebuild.

I was planning to rebuild in the same spot.

The other factor making the 3 family rate out higher is that because of the extra Kitchen and bathroom(s) the rebuilding cost (Replacement Cost) for the building will be higher for the same square footage. 

Existing house of a property we are considering needs so much work I think it would be more beneficial to completely demo and rebuild.