Home Improvement Loan in San Diego

[Quentin Brillantes]

Hello BP Fam! We just purchased a SFH in Normal Heights, San Diego. We are going to convert the garage into an ADU and remodel the main house to a 2bed/ba. We have the cash to cover the remodel but are also looking into home renovation loans to finance the rehab and keep cash on hand for another property (Or use a combo of cash and financing for the rehab). Does anyone recommend any home renovation loans?

Alternatively, we could use cash and do a cashout refi once completed (Our lender is saying the rate on a cash out refi will be higher than conventional).

Current Loan amount: $600k

Rehab: $100k

ARV: $825k, conservatively (comps are $850k+)