How do our fund my Rehab on a Property that I own

[AK Fowler]

Hi,

We have a SFR generating monthly cash flow which was our first property.

We bought a Duplex cash with our own money for $18K from one of our marketing efforts. It needs about $45k in repairs. The property is held within our LLC.    We are newbies in real estate investing and we are trying to decide if we should spend our own cash to rehab the property or use OPM such as a HELOC, private investor, crowd sourcing, etc. This is a buy and hold for us as we feel that we can collect $700 in rent per unit or $1,400 a month. Therefore, if we use our own money our ROI would be around 63 months, that's if we paid back $1000/month to ourselves. The taxes are $62/mo., trash and sewer are $80 combined, insurance is $65. We would have a property manager which would be 8%-10% of the rent. We feel that this would technically create an infinite ROI for this property.

Our other thought is to keep our cash in our pocket and use OPM and then purchase another Multiplex property with the $45k and then we would have our 3rd cash flow property.

Any thoughts or suggestions are greatly appreciated.

Thank you

Kevin and Amy