Getting Renovation Financing on a Property You Already Own

[Christopher Freeman]

Howdy all,

What are some of the best ways to obtain financing for renovations on a property that you already own? I have a duplex in Keene, NH that was purchased with an FHA loan for $163k (appraised for $186k). We're looking to do some fairly extensive rehab, including new windows and siding. We believe that the ARV could be between 220k and 250k, but openly admit that neither of us has much experience calculating this (we're just going off what our agent said and what some other nearby turnkey properties of similar configuration have sold for).

We're open to ideas. One thought I had was to try refinancing into a 203k loan, but I'm not sure of the mechanics of that (or if there's a seasoning period between purchase and refi). I was also wondering if hard money could be used in a rehab/refinance configuration, but this is also beyond my area of knowledge/expertise.

Any thoughts will be greatly appreciated!

Thanks,

Chris