Need a little... More... Cash... To finish rehab... Help!

[Duke Hartman]

Okay fellow Big Pocketers, I got myself into a big pickle. I hope you can help! I recently purchased my first deal, a three unit rehab (in Hawaii so don't be alarmed by the numbers I'm about to share). We are going to live in one unit and rent the other two. We are 85% finished with the rehab but my problem is that I need a little more cash to finish the rehab and pay back some of the credit card debt and family loans that we took on in the process. Basically the problem is that I was operating under the assumption that as soon as I got into the house I would be able to get a home equity loan on the property to help me finish construction. But that has not happened this far. Here are the details: Purchase price: $760k Mortgage: 80% conventional 30yr fixed, 3.99%, based only on my income = balance of $608k Appraisal price (during escrow): $875k My W2 gross income = $8000/mo Payment PITI: ~$3200/mo Fair market rent: Unit 1: $3000/mo Unit 2: $1500/mo Unit 3 (our unit): $1700, but we are going to be living there. Utilities and other expenses: $1000 Rehab cost: To date (after 2 months): $85k Est rehab cost remaining: $15k Est FMV after rehab: $1M I need cash from a HELOC or other source to finish the rehab and pay back personal lenders: about $45k (needed within 30 days). During the escrow process the house (unrehabbed) appraised for $875k. Thus, I thought even with an 80% LTV I should be able to get $700k-$608k= $92k out. However, the first bank I applied to (after taking a long time deciding) told me that they had a policy of only accepting the purchase price as the value for properties that have been owned less than 1 year. So I went to another bank that apparently did not have the same restriction, AND allowed up to 90% LTV for their HELOCs. I thought it was a sure bet. However, they just informed me today that my debt to income ratio is too high and they cannot lend me anything. They cannot count my rental income because it is technically a single family home (renting multiple units out of a SFH is a very common thing in Hawaii). I think it may have had something to do with the fact that I had some significant balances on my credit card of about $30k at the time from rehab purchases (that I pay off in full every month and I told the loan officer as much). But the bottom line is that I am at a loss for what to do now. I've tapped out most of the family connections I can and would prefer not to go begging to other relatives if I don't have to. I am working with a mortgage broker to see if there is any other way to get a home equity or personal loan, or even do a cash out refi. But I figured someone in the Bigger Pockets community might have some brilliant creative financing strategies that would work in this situation. Can you please please help me figure this out?? Thanks in advance for any suggestions 😅 Anxiously yours, Duke