This situation has unexpectedly complicated matters, and I am unsure of the best course of action moving forward.One suggestion I've received is to secure construction financing from an alternative source and forego the construction funds from the hard money lender.

Additionally, it's crucial to conduct thorough due diligence, accurately estimate renovation costs, and account for unexpected expenses.Ultimately, the goal is to ensure that the potential profit justifies the investment, effort, and risks associated with the flip.

Even with FHA or conventional 1-4 units, there is a risk if your tenant leaves or you have an unexpected capEx cost. 

As you run your business, you may have to buy a new roof unexpectedly, or replace the hvac system unexpectedly, or replace kitchen items on a turn because they've been destroyed or reached the end of their service life.

We run a 53 acre ranch in the middle of Texas, and the stress of unexpected problems coming up with not enough time to resolve them (septic, water lines, other equipment malfunctions, adequate pool maintenance) between guests is too great.I'm aware there's money left on the table.

It’s vital to find a lender that fits your financial goals and project needs.2: Expect the unexpected ✅Flipping houses is full of surprises!

Are there any contingencies or reserves for unexpected costs?

It’s a 2006 home so no crazy unexpected issues.  

Making a larger down payment can improve your loan terms, but keeping some cash reserves is also crucial for unexpected expenses and future investments.

Since it is your first deal, some things to consider before acquiring would be:- Have you underwrote to account for unexpected expenses?