Save the money or rehab with a loan?

[Stu Basham]

Hi all,

I've been a member for a few years but don't think I've ever posted a new member introduction. I'm just getting back into RE after buying a house hack with my wife in Jersey City, NJ. We are in the Journal Square area. The property is an old duplex that we've put in about 40k or so. We replaced a lot of things (fixtures, electrical, drywall, ceilings, etc) and that was just on our bottom floor. The top floor had been renovated slightly when we bought it and we have a great tenant in there right now.

We are settling in now with our house but the kitchen hasn't really been touched except for appliances. The rest of the house also needs some other touches (fence, common hallway, fresh coat of paint outside). We need about 20k more in upgrades to make the place look really nice for future renters when we move out otherwise the kitchen will just be an eyesore compared to everything else.

I have tried to do many things myself (painting, trim, flooring, etc) which turned out ok but it doesn't have the WOW factor that I'm looking for. I get the job done but I'd be more happy if a contractor did it. We want to keep our savings in tact to possibly use for another property purchase maybe in Philly or CT. So I was exploring getting a personal loan of 20k to get the items done and that way it's done with and we can pay it off within 3 years or less. We'd still be able to save on top of the monthly payments for that so I'm not that concerned.

Long story short, would you pay cash for all the renovations and get it done with little to no savings left (we have about 14k in savings right now), or would you take out a loan and make payments on it while still getting all the projects done. The alternative is me spending my weekends for the next year toiling at household projects that I won't be happy with.

Thanks for reading all this and I'm curious to know your thoughts!