Ran out of capital for renovation-How do I continue?

[Adam McAllister]

Long time lurker, first time poster. I bought my first primary SF in June 2020, before finding Biggerpockets. I have been DIY fixing the entire place and want to do a cash out refinance in the first quarter of the new year, however I have ran out of Capital to complete the project. I am 21 years old and make $45,000 a year, and have about $10,000 wrapped up in it so far, and need another $7000 to finish it the rest of the way. At the rate I make money and my expenses, it would take me another whole year of saving and spending all of my spare change to complete it. I need the project to move faster than that, so I am looking for advice on how to. My current options are a 0% APR credit card or a personal loan to finish and then cash out refi and then pay them off after. Looking for any experiences or advice to move it faster! I want to move to a duplex and househack or start a STR this year!

House details-

PP- $100,000

Conventional Mortgage 30 year 5% down $740 a month

reno total- $17,000

ARV expected- $145,000

800 Sq ft 2 bed 1 bath

C plus neighborhood in Cedar Rapids, Iowa

[Adam McAllister]

Originally posted by @Bonnie Low:

If all you need is another $7k the easiest route is to go to a local bank or credit union and see if you can apply for a personal loan. Local banks and credit unions typically have low interest rates on these types of personal lines of credit. Or you could use a personal loan lender (search online), SoFi is one that comes to mind although I've never used them myself. Or go to a friend or family member and offer them 10% on a $7k loan. Your payment would be nominal.

 After weighing the pros and cons of CC and personal loans, I think I am going to go with the personal loan as you suggest to play it safe. I can settle with paying a little interest on a personal loan rather than being risky with a credit card. I am currently at 25% DTI so it should not be a problem. Thanks for the reply and I hope to update after i am done! This house has been completely changed since I have purchased it!