How to Fund Rehab on a Cash Purchase

[Christina Mahesse]

I'm looking at purchasing a property in Detroit. I have a pretty good idea of which neighborhood I'd like to buy in. I will be purchasing with cash & all of the properties I'm looking at will need some rehab. I'll be doing most of the work myself or having family help.

What can I do to fund my repairs? 

(I have W2's, but no recent paystubs (recently switched to full time commission based work).

I know there's secured loans & HELOCS, but how does that work if I can't show proof of income? Or will they just use the ARV of the home as collateral for the loan?

Thanks

[Matt Hurley]

Sounds like you could do a modified BRRRR. Buy the house with your money, get a hard money loan to cover the repairs, then refinance and pay both yourself and the loan off. Gotta make sure it's the right property though.