Funding a Remodel Project

[Chuck Bartowski]

I inherited a home that would be an excellent 3bd/2bath rental but needs immediate work. The house is free and clear, but needs likely $40-$45k I’m updating/remodeling (mold, nonfunctional bathrooms, lots of drywall work, etc).

I don't have the money to cash flow it. And I need to have the house in an LLC to rent for personal reasons.

can someone please ways to get a heloc or other funding from a lender to pay for the repairs and renovations?

[Kevin Romines]

Here are the options I would recommend or consider.

1) Heloc - Pen Fed Credit union has the best non-owner occupied HELOC out there.

2) Fannie Mae Homestyle Renovation - Yes, this loan can be used for a non-owner occupied single family. It must be done in your personal name, however, Fannie Mae now allows you to transfer title to an LLC after the closing, so long as the borrowers are the majority members of the LLC.

3) Fix and flip loan - These are designed for investors and will do the loan in the LLC. You will have to get these through Bankers or Brokers as the banks and credit unions will not have access to these kinds of loans.

4) Local credit union - get a line of credit, hopefully the existing condition of the house wont be a problem?

When all is said and done, plan to refinance if necessary, to a Fannie Mae fixed rate loan. Best rates and terms available are on this loan. 

I hope that helps?