Cash purchase -> Home equity loan for repairs

[John Shortridge]

Hi everyone,

Has anyone ever done this:

Purchase a home with 100k (or whatever number) cash.

Once the home is acquired take a home equity loan out against the house to help finance the rehab. For example, if your rehab was 40k in work, using 20k of your own money and 20k financed.

Seems like an OK solution if you have the cash for the purchase but the rehab will stretch you a little.