How to get cash out of Duplex renovation
Purchased a duplex for 52k using an FHA loan (3.5% down). Mortgage payment is $300 a month. Put 55k of our own cash into it. New metal shingles, new windows, new bathrooms, new kitchens, etc. Basically a total renovation. We are living in one side and renting out the other side for $750 a month (14% cash on cash ROI). Rehab costs were a bit more than we anticipated but we are still happy with the COC ROI. The only downside is that we probably put a little too much money into it, as it would probably appraise for 100k.
What would you do in order to get some of the money out? I know with the purchase price and cost of renovation we can't recover all of the money but it would still be nice to get 10-20k out for another deal. Is a BRRRR possible with an FHA loan? What about going the HELOC route? Anyone have ideas? Open to anything!
Most Popular Reply
Did you ask the bank, it never hurts to ask aside from a ping to your credit score and they might not even run it if your in that bad of shape. Generally speaking all that matters is income/the ability to pay it back- credit only affects the rate. Make a couple of calls you may be pleasantly surprised. I'm from the mindset of if you do not ask the answer is always no.