Hi Guys, time to come clean about a failed project and how it has put the whole deal at risk. [long, td;lr at end]
Looking for input of ways to recover, and what you would have done differently.
Raised as a Contractors Daughter, restored 3 of my own houses and helped build dozens so not a greenhorn.
Roll back to Fall 2016: After a brutal contract in LA, I'm just done with Software. Really done. Shoot me in the face.
Decide to sell my Portland house and move to Seattle to be around grandkids. I get 350k or so when the dust settles.
I look everywhere for a flip opportunity and settle on a 220k half acre in a cute distant suburb called Port Townsend,
'cause there is literally nothing else close to that price in 100 miles. It's a hoarder house, estate sale.
I've done those before so np. Empty the inside, the drywall has failed, no big. Oh, ratty insulation, knob and tube.
Do those too. Oh - look at the framing, it's... treehouse substandard. Plumbing needs to be redone.
Go to the City to get a permit, get slapped with a stop work, and they add so many requirements to the 100yo shack
that a new build would have been easier, nicer, and far more valuable. Now, I'm stuck with a terrible investment.
Market is lower than the money in (220+75) and I'm unwilling to go into debt to build new. I ask you smart people:
1) How would you recover from this situation?
2) Is it sometimes better to lose and walk away?
3) Is Washington State no longer an okay place to FIRE?
cheers all.
td;lr - bought a bad house project, got underwater