How do I leverage Capex/Furniture?

[David M.]

Hi BP!

Let's assume $50K in capx/furniture per property (vacation rentals) for this thread (most of the $50K is furniture).

I am looking for some creative thinking on how to get additional leverage for that $50K besides doing a typical 12-18mo bridge loan.

Idea 1: Is there any way to include these estimated costs into a conventional loan on the initial purchase property? I know there are cash-out refi programs where once I've made the $50K in payments, and I can show payments/invoices to a contractor for said repairs (I'd have to fake this which I don't want to do), I can go get the home re-appraised with the capex done and apparently this process is relatively simple, costs around $3,200 per house and most of the time the homes appraise how you want it. Curious if there's a way to do this on the initial purchase - am guessing no. 

Idea 2: Create company #2 that is a furniture rental company (like Cort). We get a line of credit, buy furniture wholesale, then "lease the furniture" to company #1 which holds our rental properties. So we're getting the benefit of buying the furniture wholesale, and also getting leverage on it. 

Idea 3: I'd like to preface by saying I don't want to do this if it's illegal, but just jotting down my idea: perhaps contact seller and offer $50K above agree'd upon price in exchange for them writing $50K check to us personally outside of escrow? Is this illegal? Maybe add an extra 10% ($5,000 in this example) as incentive for seller to be willing to do this (assuming not illegal, just for the hassle).

Any other ideas?

Thanks!