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Updated about 6 years ago on .

User Stats

52
Posts
12
Votes
Justin Heitter
  • Coeur D Alene, ID
12
Votes |
52
Posts

Rehabs and cash out refinance

Justin Heitter
  • Coeur D Alene, ID
Posted

Hey guys I have a quick question.  I recently bought my first duplex for $315,000. (mortgage $1850) Its under owner contract right now but I am switching it to a bank financed property in may.  (due to not being at my job long enough to qualify yet)... It was built in 1975, although in great shape, it was extremely dated.  2 bedrooms 1.5 baths on each side.  I put 8 grand into one side. I updated all the lighting, put new sinks and countertops in the bathrooms, and kitchens, (nice backsplashes), I put brand new stainless appliances in. And I re rocked and tiled the old fireplace to make it look nice and updated.  I was able to get it rented out ($1200) right away.  

I moved over to the other side of the duplex(receive $1100 from my roommates, and I had a room professionally built in the garage for myself) and this side  has not been updated.  I close on may 1st with the bank(I don't need a downpayment do to a refinance) and as of now my credit score is only 595.  My question is this.  Should I spend a few thousand more dollars on my side to do the same updates and try to get cash out at the refinance date. (could I even get money out, idk?)  Or should I pay down my some of my debt to improve my credit by may. 

My personal income is $7200 a month (including rental income)

My personal expenses are $4100 a month (including mortgage payment)

Total personal debt $27,000 (obviously not including the total mortgage)

Whats the move??