Need some Advice from experienced Investors!
— Now, I was wondering whether or not I should include the violations + fees on the building into account and construction costs when I get my hard money? Also, should I factor in the repayments for the money lend to me into the hard money? The house might be purchased for $450-$550k. After I do construction, transitions to a 2 family, the property will be close to $1 million.
-I’ve estimated construction will cost me $100,000-$150,000
-Violations are $65,000
If house is bought for $500k, plus what I’ll need to do to it, then it would cost me $680,000 (estimate).
Two options I’m looking at.
Purchase Just property, and pay as I go. $500,000 hard money, cash over the span of 6-9 months $150,000 excluding down payment.
OR
purchase property, factor in ALL costs into my hard money still having cash in reserve just to be safe.