Help figuring out how to move forward after remodeling a home to nice for a long ter

[Andre Houston]

Hello my name is Andre an I have a rental property in federal way Washington I purchased in 2018 It's a 3 bed 1 bath about 1100 sq ft my mortgage on the home is 1716 I had a tenant paying 2600 a month but I found out they turned my garage into a room an was kind of sub leasing it to help pay the rent without my acknowledgement they had been there for about 5 years the house was older I didn't really have to do to much when I purchased it I ended up getting a big lump sum of money from a lawsuit so I decided not to renew their lease and remodel the house for a mid term rental I ended up putting 50k into the house pretty much gutted it an redid everything I did more than I was supposed to I only wanted to spend around 30k but once they started working things got out of hand the house is beautiful but I ran out of money to get the house furnished the house sits on a 9000 sq ft lot so my plan was to put 30 into the house an try an figure out how to build a dadu in the back I currently have a HELOC on the house for 44000 untouched I also have an investor that has 60k for me to help with the dadu my question is what should I do because now that the house isn't furnished I can't do mid term rental so I can only do long term but nobody can afford the rent which is 2800 I'm only able to go up 200 from before I remodeled it so 200 x 12 = 2400 which isn't no where close to the 50k I put in to invest should I just try an figure out how to furnish the house or should I just take a loss an rent it out for the same amount I was getting before the remodel I'm on month 5 of having to pay the mortgage myself I had a few people that wanted to rent it but they can only afford the 2600 an I was getting that before the remodel I feel stuck I need help thanks in advance

[Andrew Bang]

Trying to put the pieces of the puzzle together.  You said planned to make it a mid term rental but ran out of money for the furnishings, but you also have 44k in a heloc and an investor willing to put in 60k.  So, you are not out of money?   Why not use a little of the heloc to funish and make it a mid term rental like you planned?   

[Andre Houston]

Thanks Andrew for the question I have the house on furnish finder and Air bnb saying it will be furnished but I don't want to throw anymore money into the house unless I get some bookings so far in 3 months I got 2 air bnb bookings an no furnish finder  I already over leveraged myself on how much money I put into the house I'm scared to fill it up with furniture and it just sits there with no one renting it

[Andre Houston]

It seems like the right thing to do is finish furnishing it BUT I don't want it just sitting furnished but it also seems like mid term or short term is the only way to make my investment back because the normal people can't afford 2800 to 3000 on a brand new home

[Eric Gerakos]

What’s a dadu?

[Andre Houston]

Detached Accessory Dwelling unit

[Kerry Baird]

You need to stop the bleeding. As a newly remodeled house, and the few years of holding and renting, you ought to have a bunch of equity. Sometimes the numbers tell me its better to sell and find another vs refinancing or using the high interest HELOC. I just took some cash off the table with a rental house that wasn't working as well for me.