How to Finance Reno in Tight Credit Market?

[Kyle Bart]

I am looking for finance recommendations for an up/down duplex reno. I can pay cash for the reno, but want to have that cash available in Q3/Q4 2021 for my next property. I've searched the forums, but since credit is tightening I wanted to learn how you would finance this project today. My options as I understand them:

1. Reno w/ cash, refinance after 6 months (broker may need to accept rental income so I meet DTI requirements)

2. HELOC post-reno (can I get an appraisal after reno to increase value? Also, would HELOC underwriting include new rental income?)

3. Home Construction Loan (idk much about these)

4. Private/Hard Money options (I think too risky for my primary residence, but open and alle ars)

Details:

My primary residence

Conventional mortgage, will put me at ~40% DTI @ 10% down, or ~35% DTI @ 20% down. Either works.

Reno cost: ~$50k - $60k

Appreciation based on reno'ed comps: $90,000 - $150,000