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Updated over 6 years ago on . Most recent reply

Rookie - finishing 1st property and learning financing options
Hello - a good friend recommended I join BP to learn and hopefully get some advice on a question that I had called him seeking answers for.
As my post header states, I'm a rookie. I am rehabbing my first investment property (a 1950s 3bd 1 ba, 1100 sq ft sfh) and have done the majority (75%) of the work using my savings and a loan against a retirement account. I am at a point where I need additional cash (10K) to complete the remaining work which includes replacing some windows, painting inside and out and doing some landscaping work - throwing down some crushed rock on an unfinished driveway.
I'm an accidental real estate investor because I bought this house to keep my son in a good school district when we were moving from my old school district to the current. I bought the house for $65K (3 yrs ago) and have since aggressively down on that loan. The plan is to follow the BRRRR strategy. So I called my friend today because I found out (to my surprise) that my credit union (and other local lenders) don't do HELOCs on non-primary residences. They do HELOCs only on primary residences. I find out it might be better to go for a business loan and have sent off a number inquiries but thought to post the question here about what best to do given I want to follow a BRRRR
What is the best way to get the cash that I need to finish my rehab - about $10K? My ultimate goal is to pull out the equity from this house and go for house #2.
+ Get a HELOC on my primary residence and use the cash the finish the rental and rent it - just 10K?
+ Use a hard money lender for just the 10K
+ Simply try to refinance the house now (I have $125,000 in equity) so that I have all the cash in hand and am ready for the next house? (don't think that's possible if I'm in the middle of rehab)
Thanks.
Most Popular Reply

Hi Will,
If your credit is great. Go apply and get a 0% credit card for 18 months. Use the card on the $10k you need to finish the project. Do cash out refinance and pay off the card. Just giving you another option.