Investor Needs Advice: Renters Trashed Property Repairs to Cost $10K

[Corey Dutton]

I have a real estate investor friend who needs advice. He has an SFR rental property and discovered after the most recent tenants vacated, that the property was nearly destroyed. Bid for repairs came back at $10K.

Forget about legal recourse for now. This will take time and money and he is already pursuing this option.

He has a conventional loan on it for $150K and it appraised last year for $192K. He's at 78% loan to value, so the bank won't do a HELOC for $10K and no hard money lender will do a 2nd mortgage because the Loan to Value is too high. He has no cash on hand for the repairs, and no other investment properties to use as collateral to get cash out.

He needs $10K for repairs to get it rented again. That's his top priority for now. I suggested he get a Home Depot credit card and put most of what he can on that. What else could he do to get the $10K he needs to get the property back in shape so he can rent it? Any creative ideas you would suggest??

[John H.]

Can you explain better what the house needs. $10k sounds high unless the tenant removed plumbing, wiring and put holes in the roof.

I bet he can get it rentable for cheaper if he needs to, and from the sounds of it, he needs to.