I am purchasing a 4 unit property that will need significant renovations that I expect to take a total of 8-10 weeks.
I will be purchasing it with cash (mostly my HELOCs) and doing a refinance when it is renovated and occupied. We agreed on a settlement date in 4 weeks and my seller has told me I can begin working on the property immediately. I don't have any other projects at the time and the idea of beginning my renovations now seems like it would save 2-3 weeks of holding costs for me. My questions are:
Are there any negatives to starting my work early?
How can I properly insure myself for this scenario? It will be mostly myself and a friend or 2 doing demo work.
Dont do any work until you close. The Seller could back out at any time. Then you sue and spend more on attorney fees. The Seller could die and then you're waiting to figure out what happens with the estate. Too many reasons to list. Dont do it.
What did you end up doing? I'm curious because I'd love to start exterior paint before the weather turns cold, but I'm not set to close for about 3 weeks and I'm sure my lucky warm weather will not hold that long.
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