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Updated about 2 years ago,
How Should I Pay for Repairs?
Hi y'all,
Just purchased a 3 unit property that needs 40K in structural repair before it can be rented. I'm considering the following options to pay for these repairs:
-- Cash-out refi on another rental - I could prob pull 30K-40K out after closing costs but would lose my low 3% interest rate. Even after the refinance, the property would pull in considerable profit, and the cash-out would cover most if not all of the repair costs.
-- HELOC on 3 unit (which is also primary residence)
-- 0% Interest credit card
I'm inclined towards the cash-out option because it wouldn't directly eat into my cash flow, rather it would cut into my profits on that rental. Are there any other options I haven't thought of yet? Which one of these options would you choose? I'm a small multi-familiy investor and if I play my cards right on this property, financial freedom is on the horizon.