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Updated about 9 years ago,
Help, I'm making that classic "run out of money on rehab" mistake
Earlier this year we bought two houses that needed major work. We purchased them with a Fannie Mae Homestyle loan, which is similar to an FHA 203k. I got a bit carried away on the rehab, going beyond the bank loan amount. I figured that would be okay as I could figure out how to make up the difference.
What I wasn't counting on was throwing in an offer on a big old expensive house in the nicest part of our town, getting my dad to jump in as a partner, and then actually closing on that place.
So now I've got three remodel projects underway at the same time, and funds are running quite low. I can see the light at the end of the rehabs, and I'm confident we are still well under market value on the properties, and they will make great rentals, but I just have to figure out how to get from here to there. And I have to figure it out pretty quick so things don't grind to a halt. I've tapped about as much family support as I care to ask for, I've dipped into the zero interest for x months credit cards, I've looked under rocks...
Any ideas/suggestions on what to do at this point? I've got good credit and a steady day job. I've got a property that I bought in 2012 with about 30% equity on current value.
Thoughts, ideas, suggestions?
Thanks!