Inherited Home- best way to finance a rehab

[Kristi Barron]

Inherited a home. Looking to remodel. I'm completely new to real estate. 

What is the best way to find capital to remodel? Bank loan or 401k loan? 

I'm looking to update from 3 bedroom 1 bath to a 4 bedroom 2 bath house. What is the best tip to make sure you don't over-renovate a home? 

Thanks!

[Ken M.]

Quote from @Kristi Barron:

Inherited a home. Looking to remodel. I'm completely new to real estate. 

What is the best way to find capital to remodel? Bank loan or 401k loan? 

I'm looking to update from 3 bedroom 1 bath to a 4 bedroom 2 bath house. What is the best tip to make sure you don't over-renovate a home? 

Thanks!

That's quite an undertaking partner. First you want to look at Redfin dot come for the zip code and see how the Active properties are fixin' up their spread. A 401(k) has to be repaid fairly quickly and is restrictive so I don't usually recommend those. 

Find a mortgage broker in your neck of the woods and ask about FHA 203(k) rehab loans.

Check at the county/city to see if you can get permits to add the additional bed/bath. 

 Get everything in writing from your contractor. Ask how much change orders are. Talk to a couple of people he has done work for. Send me an armadillo pie once you are settled and everything went well.