Raising Funds For Rehab

[Jessica A. Smith]

Happy Hump Day!

Looking for advice on how to raise funds for deals less than 75K. I've reached out to several HML and was shot down due to the project being so small. I have a 2/1 under seller finance which I have a 10K balance remaining. Looking to put in 30-35K into rehab. Houses this size are selling for 86-90K and renting for $700+ easy. Looking to use this as a rental or even house hack it while rehabbing, but the FUNDS. Currently don't have access to a PML within my circle, and now my only option is continue to beef up my personal savings, continue wholesaling, and use of credit cards.

What's your take?

[Lucas Machado]

@Jessica A. Smith Spending $35,000 in repair costs for a property with end value of $90,000 doesn't make much sense unless your buying it at a very low price.  The math doesn't add up.  I typically spend $35,000 on repairs for properties with end values of 2-3x $90,000.  The rehab cost is the rehab cost, though - you can't necessarily change what needs to be done to reach your sale price.  Of course, if it's a rental you shouldn't be expending the same amount as if the property is being sold to an end user.  I would also note paying $90,000 for $700 rent doesn't sound appealing - I wouldn't expect investors to jump at that.  Rent closer to $900-$1,000 should draw more interest, but even there, it isn't slam dunk for the investor.