Funding for unplanned repair

[Erick Caffarello]

Guys, I have a duplex that’s about 100 years old that I bought back in 2016. At the time I had 2 Foundation inspections and both came back clean.  (One even said “this is over 100 years old and will easily last another 100 years”). So, based on those inspections, I didn’t think it was necessary to include foundation work as part of capex - at least not yet. 

Recently a crack surrounding a window was uncovered and there is noticeable separation and cracks in the basement (one of the cracks on the basement you can see outside!). Front deck will have to be removed/replaced to excavate both basement walls.

The total cost for the project will be around $50k.

I was wanting to do a HELOC (to keep my property expenses the same) and have the cash at hand to fund additional properties, but can't find a lender that can do a HELOC on a rental. Can anyone refer me to lender that does?

Another option is to cash-out refi which would double my monthly payments, and I’d like to avoid that. 

The bank I have my business account at offered an unsecured loan at about 8% for 72 months (payments about $860/month).

Are there other options? Any recommendations? Not wanting to sell.

Thanks,

Erick

[Andrew Postell]

@Erick Caffarello hmmm, I have lots of questions here - like, how does taking $50k out double your payment?  Are we saying that your payment goes from $300 to $600?  If so, then that's still WAY better than the unsecured loan product.  There are also renovation loans that will allow you to roll in all of the renovation into your loan.  But these other questions I have might help to have answers on.  If you want to give us what you think your value is and your current balance of your mortgage, that might help us with crunching some numbers for you to see what might be best.