Financing STR Renovation

[Kyler J Sloan]

I am going to close soon on my first STR rental property, but there is quite a bit that I would like to do to it before putting it on Airbnb.

I was considering getting two project loans -- one for the materials, and one for the contractor labor -- and paying them off ASAP from my W2 and rental income, immediately after the project is done: 

[1] Home Depot Project Loan

[2] So-fi Renovation Loan. 

Would a contractor dislike the idea of me giving him login information for the Home Depot card for him to add the materials he needs onto my cart to be sent to his address of choice? 

I liked this idea because I can make interest only payments on the supplies used for the job, and prioritize paying the contractor first. 

[Kenton LeVay]

I would absolutely NOT give a contractor (especially a contractor you are new with) log-in information to your Home Depot project loan! They could take that money and buy some new fancy tools or materials for other projects. I don't know why you need to use the Home Depot Project Loan to fund the materials instead of just another personal/home renovation loan from a different lender. This way you can buy the bulk of the materials up front and then when the contractor needs to run out to Home Depot/Lowe's for some random material, which is inevitable, have them keep the receipt and pay them back after. You won't be able to do this with a Home Depot loan because I'd imagine they only let you spend at the Home Depot...