Advice Welcomed: Unwanted Transaction in Austin

[Jenna G.]

My offer of $335k was recently accepted on a house that needs to be renovated and I am now in the option period. It’s in east Austin, 3bed 1.5bath. Houses in this neighborhood that are renovated go for around $450k.

Two issues: (1) I no longer want to take on this project. The inspection came back with lots of work needed (new AC unit and water heater, extensive termite damage, critters living in attic, roof needs a tune up, and cosmetic repairs onto of this) but not terribly bad (furnace is fine, roof doesn’t need replacing, foundation is fine). Termite repairs seem not very expensive but I don’t have experience here. (2) I don’t want to lose my option $, I went pretty high.

I have been advised on a few ways to make sure I don’t lose money or at least break even, but am looking for further advice. A few ideas so far are: (1) buy it, do minimal repairs, and sell right away, (2) have an investor take over this contract, (3) buy it, Reno, rent, then sell after a year.

If you have any advice on how to break even or profit, I would love to hear. I am trying to weigh out all of my options.

Thank you in advance!

[Ryan Kelly]

@Jenna G. by the way, your OPTION money is not-refundable, so it goes to the seller whether you buy or terminate. The EARNEST money is refundable and is returned to the buyer if you terminate using a valid contingency in the contract. Just want to create a distinction between the two. This is specific to Texas contracts for those not in Texas.