Financing a House Hack

[Tyler Whatcott]

The house I currently own has a basement that is prime for a house hack (accessory apartment). It'll cost me about $40,000 or so to get it completely converted into a basement apartment. I don't have that much saved up right now so what are the best options for financing the remodel? I also own a townhome that I'm renting out that has about 30% equity in it. I'm hesitant to cash out refinance the rental because I have such a good rate (2.27 - is a VA loan and was our first home) and have a bit of cash flow (not a ton but a decent amount). My current home only has about 10% equity. I'm also hesitant to do a personal loan cause I don't want to get stuck with a payment for a couple of years. I'm also very new so I don't know what options are available. Any help or direction would be much appreciated.