Financing for Renovation part of BRRRR

[Bhanu Kuna]

Hi Everyone!

Recently closed on my second investment property! My intent is to BRRRR this deal. I'm doing some research and trying to understand what the best way to finance the rehab portion. Would it be a personal loan from SOFI or a similar company? Or is there a lender who would pay for the Rehab and funnel that straight into the cash out refi?

Deal Facts(Located in Philly)

85k Purchase Price

40k - Rehab

170k - ARV

Expected Rent(Per Rentometer) - 1350

[Brian Kantor]

@Bhanu Kuna, you mentioned that this is for your second property, but you didn't mention your equity stake in your first property. If you've got a decent amount of equity there, you could take out a HELOC against it to use for the renovation here.

Also, throwing this out there as well: If you have a Whole Life insurance policy, you can usually borrow against your cash value at very favorable terms with an unlimited amount of time to pay it back.