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Updated about 6 years ago,
Creative Funding for Completing Renovations
Hi everyone! I'll detail my current situation below.
I bought a house in October for approximately $171,000. It was a foreclosure. When the lender had the property appraised, it appraised for $235,000. With that good news, I hatched a plan to remodel the house and possibly live in it for a couple of years, then sell it and profit some money. However, I'm new to investing in real estate and have found myself in the middle of renovations with funds beginning to run low. My original plan was to get a HELOC or home equity loan this summer (since it'd be passed some lenders "seasoning" requirements) and use that money to pay back the loan of $15,000 that I got from my parents. However, I'm concerned that I won't be able to get a HELOC or home equity loan due to the incomplete renovations.
Does anyone have experience with something similar? Do you know if partially completed renovations will affect a HELOC or home equity loan? Should I explore other financing options like possibly a personal loan or hard money?
I hope I gave enough context for you to understand my situation. If not, please ask questions! I'm open to any advice and creative financing ideas that you have, so please comment!
Thank you for your help!