All Forum Posts by: Travis Wiggins

I am considering purchasing a triplex in Klamath Falls, Oregon. What is a good starting place for an estimate to completely overhaul the interior of each 900 sq ft 3br/1ba unit as current tenants move out? 

Full new paint, new flooring (vinyl plank vs carpet), new cabinets, countertops, fixtures, sinks, tubs, lighting, basic rental grade appliances, etc. I am looking for clean and rent ready finishes, not luxury or custom. Kitchen spaces are simple galley layout. Bathrooms will take normal size tub/shower and smaller single vanity. 

I will do the demo of current finishes myself and likely hire out much of the installation of the new finishes listed above. 

I know this is a broad question, but are we talking 20K a unit? 40K? More? 

Those that have done this please feel free to drop some knowledge!

Travis

I currently have three doors. I got into real estate investing on accident and have been self landlording for ten years. My goal for 2021 is to tighten up my game and start doing this intentionally, including acquiring at least one new property this year. I have considerable equity in the rental properties I already own. My plan has been to take out a HELOC on one or two of those properties to put some of that equity to use, likely with the BRRRR strategy. After talking with a lender that does HELOC on rental properties, I was told I may be eligible for a line of credit potentially as high as 300K. I was excited about having access to this much capital!! Then, after obtaining all the documentation and actually applying for the HELOC, the same lender told me I would have to pay down a substantial amount of my student loan debt in order to qualify for ANY line of credit. Bummer!! I am not prepared to do that at this point.

So now my question is this….Do I keep searching for a lender that will give me the HELOC without paying down my debt? (I have read and been told that I need to get used to hearing NO) Or do I find another avenue to obtain the capital for my next investment? Is a hard money lender a good option? What else should I be considering?