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Real Estate Deal Analysis & Advice

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Jeremy S.
  • Mechanicsburg, PA
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186
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Starting a rehab before closing

Jeremy S.
  • Mechanicsburg, PA
Posted Apr 13 2015, 19:16
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. Thank you

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