Analyze a financial situation for me? What would you do?

[Drew Dowdell]

Lesson Learned:  Go Back In Time and Join Bigger Pockets 10 years ago. 

So about 10 years ago I purchased 2 rental properties (Duplex and a 4Plex). Not long after that, the economy crashed and I lost my job.  The properties themselves were fixer-uppers. Not in the best of shape, but rentable. I wasn't able to replace my job very quickly and when I did, it wasn't the same salary I formerly had.  I came close to foreclosure on one of them, but managed to pull through.

Eventually I got a better job that required frequent travel, things stabilized for me financially, but as I was still bruised financially, very credit shy, and away from the area 90% of the time, the properties slowly fell into disrepair to the point of being unrentable.  I should have sold them years ago, but wanting to be a full time property investor one day, I hung on to them and paid the mortgages out of my salary. 

Fast forward to today. Once my credit cleared up, I gained large credit lines from credit cards. Last year I started using those large credit lines to rehab the properties. (again, started this before really using BP) The duplex is nearly complete and the final vacant unit was listed for rent today.  The 4-plex is in bad shape and still needs substantial repair.

So here is the property setup:

Townhome-style Duplex (both sides 2br - 1 bath) : (Current mortgage balance: $40k, approx value $95k - $110k, Rent ~$1600)

A side listed at $900 per month, tenant pays everything except sewer and trash. This unit is freshly renovated, refinished hardwood floors, nice new tile bath, new HVAC, fenced yard.

B side currently rented at $650 a month to tenants whom I'd love to keep but who are having a baby and have already informed me they will be moving out in August. This unit will need carpet and paint once they move out as it is an older renovation.  I intend to bump the rent up to at least $700 once they leave.

4-Plex (Four 1br - 1bt, varying sizes): Current mortgage balance: $80k, ARV $235k and climbing, Rent when finished ~$3725)

This property is actually two buildings. A 1901 house that was converted into apartments sometime in the late 70s. Electric is split, all other utilities are shared. When finished, I expect the two larger 1 BRs to rent for between $900 - $1000 a month, the smaller 1 BR will rent for about $700 a month. Other apartments in on the same street in a duplicate layout house go for similar. I'm expecting $40k - $50k in repairs to get rented.

There is a carriage house in the back which is a yuuuge 1 bedroom, all utilities are separate. This has built in laundry area, hardwood floors, garage. I expect this one to get $1200.   Under the rear apartment are 4 garages. One of which goes with the apartment above. 

This property was purchased with the intention of it just being section 8 rentals, however in the last few years, Google and a number of other tech companies have moved into the area. Property values and rents have been climbing. 

So here is my problem:  I put all of the repairs so far onto my CC credit lines.  This was not a good move as it has killed my FICOs.  My reports are otherwise clean except for the utilization. 

What I want to do is refi and cash out the Duplex to pay down the CC lines, and do something similar for the 4-plex but to use the cash to finish the renovations. Twelve months ago my FICOs were in the 750 range, today due to utilization, I'm 678. While I have yet to try, it doesn't seem like someone with a 678 and utilization as I have will be able to do a traditional refi on the rental properties. 

One last item.  I also have owned my home since 2003. Mortgage balance is ~$50k and value is ~$135k. I love my home and have no intention of moving. I would rather not use this for equity, but if I have to, I have to.

All of these properties are in the Pittsburgh PA Metro within 5 miles of my own home.

Can anyone point me towards a way to get these properties done and cash flowing again?