What is the best route to cash flow

Question

Hello BiggerPockets my name is Troy, I have a very interesting situation and was trying to figure out the best route to take next on my real estate journey. I presently own two renters out right without mortgage and have existing tenant from last owner. At the same time I have a new construction which I am right at finishing. Already got one tenant out with the other tenant notice to vacate the second property by May 15. The two renter properties are in need of some repairs and I am right at finishing the new construction. Bigger pockets any advice on how to leverage what I already own to get some funds for repairing the two renters. I was thinking finish the new construction then take out a heloc on the new construction. Good think is I build the house myself so don’t have a contractor cost with exception of hvac.

Due do this process I have kindle hurt my credit score. Any Advice would greatly be appreciated. Thanks

Kerry Baird · Answer

If you can rent the two houses again, especially if the market rents are at a higher amount, I think I would go that way. Or do small repairs, and get tenants in asap, you’ll have cash flow to keep going.   You need a mix of money to fix houses and get income as the houses are rented. This is peanuts. Won’t help you get caught up, or solve credit issues. Better plan was to have had the HELOC in the beginning.  In order to be conventionally lendable, you need good condition and a lease, plus a couple of months with those rents hitting your bank account. in the meantime, ideas: Do you have cash accounts you can use to pay down credit? Borrow against your retirement accounts? Sell something? Talk with your relationship lender? Maybe personal loan? Tax return and refund? HELOC on your personal residence?

Sorry…this sucks. Been there, done that. Good luck~