All Forum Posts by: Socorro Temple

Hello Everyone,

Last year, I purchased a property using a DSCR loan for a medium renovation. The existing home was 1,000 sqft. But we've decided it would be best to add a second level and build a new home. The home is located in Warwick NY

The situation: We have an existing loan on this property ($215K, appraised for $290K) and the construction renovation cost will be $310K to create practically a new home of 2,080 sqft. We currently have $150K from a HELOC from our primary residence and $60K from a 401K loan. So we have about $210K for the construction but are short $100K to begin the process.

The estimated value of the home, once completed would be between $675K - $750K

FYI, we also have an investment condo valued at $300K and a loan balance of $175 that has been fully rented for 4 years now.

Both my husband and I are W-2 employed with a combined income of $185K

We are not planning to flip the home. We want to rent the home for short or long term.

In this particular situation, what would be the best course of action to get the $100k that we are missing? The curveball is that we already started the demo and most of the existing home is gone.

I am trying to provide as much info, so feel free to ask anything else you think I might be missing.

Thank you for your help!

ST