In a bit of a bind.....advice?

[Nicole Thompson]

We purchased a rehab flip home awhile ago and made a huge mistake not re-financing at the start to liquify our funds again. We also trusted a "friend" to work on it (paid), but he averaged 10 hrs/wk - had many excuses why he'd work one week, then take off 2-3 weeks - he's since been fired.

Anyway, here we are.....running out of funds quickly and we're still in bare studs..... The only amount owed on this 4 BR, 2 1/2 BA home is $30k we borrowed from the bank (to pay this guy to do it and carry it).

I've been looking on-line at hard money lenders such as prosper.com, but I'm wondering if we should go back to the bank we borrowed the $30k from - it was a 1 yr interest-only loan - to see if they'll loan us more to finish it (I'm sure they'll extend the term, but that doesn't solve our money crunch).

Or do you have other suggestions? We're much heavier on the credit card debt now than we were when we started - this rehab was s/b a simple kitchen/bath redo, but when we tore out the existing kitchen, it became very apparent, it needed everything re-done.

We only paid $50k (plus the $30k loan) for the house and when we get to the finish line, our area should support a selling price of 189k (conservatively), so there will still be a profit at the end - IF we can successfully get to the finish line.

My husband does remodeling for a living, BUT here's the rub - we don't have enough funds left to both carry it and replace his wages for him to work on it f/t, which is what we'd like the additional funds for - to either hire someone else or have him do it and go to p/t or take a leave of absence from work until it's done. He's working on it evenings and weekends, but it's moving very slowly along and we're fearful we're going to run out of carrying funds LONG before it's finished (and sold).

We have MUCHO finishing materials already - almost everything we need (b/c as I said, we weren't figuring on tearing it down to studs in the beginning)......in your opinions, should we try to sell it as is to another "investor" or try to borrow more money and finish it? And if we do borrow more, how/from where?

The home is in Centre County, PA - and real estate market here is pretty "stable", so houses are still moving and haven't lost their values like many areas.

Thanks.