Pickle in a Fix and Flip

[James Bordeaux]

Hi Everyone,

So, I took the plunge. I bought a house (Tax Lien). Last year. 8 to 10 weeks to renovate, but I got road blocked with a redemption and lost about 2.5 months of work and holding costs. Then house gets broken into, $1,500 bucks gone, then battle with contractor and costs. I finished paying what was explained to me as fair but locals know it wasn't. Second theft of the house happens, costs me $6,000 dollars for repair. All said 9 months it took to complete on a $4,059.00 house. 3 bed, 1 bath. 

All in costs- $54,000= holding costs, renovations, (NO HVAC) thefts, legal problems, utilities, appraisal and inspection.

House is worth $41,000 as it currently sits (Was told it would be worth $55K to $60K when renovations are done.)

I am out of money, out of credit, out of time and in a major bind! House is "rented", insured and what not, but I cannot float all the debts on the rent. I am unsure of how I will get the HVAC system installed yet. My credit score has tanked bad in the last 45 days!

1: Should I just sell it out right, take the cash and invest in other project and use those returns to pay off the debts sooner than the 4 years projected by my debtor agency? (ideal, if it can be sold)

2: Not sure what option 2 is. 

Help, ideas, thoughts, buyers...all are welcome. 

[Bill B.]

You should probably at least put your location in your profile and then probably at least the zip code of the property. A Texas expert isn’t an Arkansas expert isn’t a Mississippi expert.