Hi BP Good evening. I have a dilemma. I just bought my first rental this year at the end of June. It is a vacation rental in a good market located in the Poconos near all the good stuff. I will try and make this short but to the point feel free to ask me any questions you may have. I bought this house cash for 70k in June. I just sold a long term flip in January of 2020. About a week after I bought this house I lost my job and hade about 20k in reserves cash. Ok so this rental that I just bought needed about 15k in renovation. Its a small house about 800 Square foot. My friend was helping me with the work because I am handy with mechanics but not so much with house renovation so I thought.
I lost my job about a week after I bought this rental my friend demo the hole house and when he found out I could pay him until the house was up and running again i would pay him first out of every booking I had. Probably about 5k in labor but I paid him for the work he had just done. He said ok no problem I can do that i am not hurting for money and I won't even charge you for the kitchen its so easy i will just come over and help you with it and show you. Ok ausome thank you very much we shook hands and it was a plan.
He never came back it was always next week. So after about a month I started doing stuff my self. Put a new floor down pergo put in a kitchen a bathroom electrical, plumbing no tile in the bathroom but there is always later I guess. I put in pine boards around the hole house new rugs for the bedrooms. I had someone install them. Ect pretty much a cosmetic gut job. Ok so now I am all done and I hooked up with a good realtor in my area. I found another house 30k in this market here in the Poconos right now its a good deal. Its just a shell needs electric plumbing and everything else. 1000 square foot home. Figure 3 bed 1 bath and there going for around 140k to 175k depending on interior and square feet.
So now my credit is nod good ebough anymore for a conventional loan because of my lost job. My cash reserves are almost gone because I needed it for the reno work. I have this potential good deal that I am still going to look at tomorrow with my contractor. What do I do next?
I hate to pass this up just because I fell on some hard circumstances. How do I get the money for this deal? Is there anyone out there in BP that can fund this or come in as a partner. Is there anyone in or near the Poconos that has been looking to get into this market and needs boots on the ground. Those boots can be mine. I am ready and willing to help someone out just the same even if this is not a good opportunity for you. Thank you for you reply in advance. Remember ask me anything you didn't get from my description of the story.
