Purchase $1Mil, Construction estimate $1Mil - $1.5Mil, so total cost $2-2.5Mil.

And I know relatively little about the construction process (which is in and of itself a reason not to get involved with building), so I'd have to hire an outside GC or custom builder to do the job.

I bet with your experience you can offer a lot of great advice on construction!

He has been giving me construction advice and also ways to maximize my commission from this project.

I know anything where you pay up front is a red flag but I would imagine if it was specified in a well constructed contract it could be safe.

It is on a block where there are all new construction homes and only his old house with the 2 connecting lots.

The place was built in the seventies and the non-code conforming construction stairs were still in place, conveniently covered with carpet.

Our house needs updating but is certainly livable and there's similar sized new construction (w/o parking) going up on our block and all around for $110k more.

There are still a few banks out there that do construction loans.

You can get an appraisal for the finished unit, use a bridge loan and or construction-rehab loan based off the ARV.So, check conventional and non-conventional, private/hard money lenders.Get credit from material suppliers, use thier money!