Looking for some insight

[John Graves]

     Hey BP readers, thanks in advance for your time. I know how valuable it is, which is why I’m perusing this route in the first place!! 

     I’ll list my situation and my questions. Basically I already know what direction I’m headed in. I have equity and I’m educating myself every day. I do however want some outside opinions on what I’ve put together from my reading. 

  145k initial loan on my house

  130k  current loan

  10k judgement (divorce issues)

   5k car loan (currently contesting this as it’s my x wife’s)

  240k current market estimation

        (No rehab)

  280k+ After repair value 

        (Possibly a good deal more)

5 true bedrooms 2 full bath 1680sqft, comps to only 6ish properties in the area which are valued in the 500K+ range but all have either brand new construction or a large plot of land. Neither of which is my house so I'm comping it to 4bedroom houses with similar sqft/ land/age. So my ARV is a bit tricky after the 280k mark to really be sure of but it's possible to get more.

Ok that’s the picture of the situation. 

     Here’s what my plan is. Take out a heloc for rehab and removing that judgement from my credit. Pay off the car loan that’s not been paid because I’m tired of it being on my credit even tho it’s “her loan/car”. Thinking 35k ish (15 for judgement and the car loan) then I’ll have 20 for rehab. 

130k + 35k =160k essentially

After rehab, get a cash out refi for the remaining equity ( @75-80%) and then keep up the BRRRR

That’s my plan roughly

Here are my questions and the credit side of things: 

     Wells Fargo hold my mortgage but denied my first Heloc request. Mostly for the judgement and car loan. Which is what I’m working to remove.

It's been a month, my score has improved by over 20pts to a 645, my DTI has improved to 26%, and I've opened another credit card because I have only 6 and they want to see more accounts. Which were the other reasons they listed for the denial.

     Should I : 

    Apply with them again at the same heloc amount of 50k. (Old plan)

    Apply with them again for an amount of 35k (new plan) 

    Apply with them and everyone I can for the original 50k, take the best offer IF I get one. (50k is just more wiggle room for me)

    Apply with them and everyone I can for 35k take the best offer IF I get one. 

    Wait another month or so before trying again. My biggest aim is removing this judgement using my equity without refi. That way I can rehab and then refi cashout for a larger amount. The property already cash flows and I house hack. I’m not trying to flip this house. Maybe a 1031 exchange at a later date if anything. 

   Thanks for reading this far and I really appreciate your thoughts. I think I have a pretty good idea of what to do buuuut outside perspectives is always helpful.