Delayed Financing Strategy

[Christopher Rowan]

I just purchased a quadruplex for 340K with a line of credit. With around 40K in rehab I estimate its ARV to be 475K. It is currently fully occupied with leases not ending for another 10 months. My plan is to take a mortgage out on it ASAP in its current state in order to pay off some of my line of credit. Once all leases are up next year, I will perform the rehab, and then rent it out again. Once fully rented, post rehab, I would like to the refinance the property at its new ARV. Has anyone used this strategy before? Am I better off just waiting till after I do the rehab a year from now to finance it for the first time? Thank you for in advance for the advice