Stuck in a BRRR NEED HELP! Made a rookie mistake

[Ahmad Houston]

So I need help figuring this out. I bought this gorgeous brick Duplex right before the market went up for 60k and at the time i purchased it because i had a partner that was going to finance the rehab (35-45k). the ARV is 150-190k but they backed out. I ended up pressing forward with the property and made a rookie mistake being frustrated with my partner backing out, I started gutting the upstairs unit place myself. Later found out from navy fed when i went to get a HELOC that because the unit upstairs was gutted that i couldn't access my equity until the unit is put back together. So Im stuck now trying to find the money to finish the project and access my 100k in equity.

I also own a 3br 1b house free and clear with a long term renter paying 650/mth 

please help me figure this out or point me in the right direction on how i can get over this hump and on to my next deal

[Taylor Dasch]

Well in this case, the solution seems fairly obvious so this may not be of any help to you, but if I were you, I would leverage the 3/1 that you own (cash out refi) and use the $ to renovate the upstairs unit. Access that equity and you can either pay the 3/1 off or continue to leverage yourself. I have a similar scenario except the property I would leverage is not paid off, I have a 3.5% interest rate on it and a cash out refi would give me a 6.5% interest rate. The numbers make sense, but I would rather flip my property and buy another deal than lose my interest rate. 

Other options: Depending on the cost of the renovation, you can get a PML or a Personal Loan to finish the rehab and access your equity then pay it back. 

Depending on your current (if it is conventional) you can rent the other unit out and repair the top unit slowly and sacrifice the cash flow and return you would get from using leverage to do rehab the property all at once - this is the worst option in my opinion. 

If it were me, I would definitely leverage the paid off property though. Good luck!