The lender must review and approve the renovations in advance, and must inspect the completion of all items that cost more than $5,000.A borrower may request reimbursement for their payments for the cost of materials or for the cost of properly documented contract labor, but not for the cost of their sweat equity (labor).

Details below...We need a FAST cash-out loan product that requires only the personal guarantee of my business partner (60% ownership) to be used for: completing the remaining rehab and getting the 1st house rent ready, paying off revolving credit accounts to get her credit score up, and funding the other projects we have in the works.To help bring you up to speed on what's transpired over the 11 weeks we've been in business...We started our business on Dec 1, 2023, leveraged our "then" good credit/high w2 incomes to bootstrap the startup, assembled a rehab team, and are now about 2 weeks out from the completion of our 1st rehabbed property.We've closed on 3 properties, all owned free/clear, and have paid for renovations with personal funds/credit.My credit score was 810, but is now 592, due to excessive debt but 100% on-time payments, therefore can't personally guarantee a loan.My business partner's score is currently in the 700s, but likely wont be for long, due to her revolving credit % continuously increasing, as we push towards the completion of the first rehab utilizing her remaining credit on her CCs.Recently, I started researching the underwriting timeline for DSCR loans. 

😁My biggest dilemma is the initial investment for the down payment on the first property.

Another person with a few million in investments (mostly liquid types like stocks, no mortgages, one paid off rental property and doesn't want to buy anymore property) is make quarterly payments to the IRS. 

I have a good full time w2 job so coming up with a down payment is not an issue.

But he did that because there's only a 1% pre-payment penalty so he didnt want to incentivize us to refinance.

I've calculated the mortgage payment to be around $5500/month with a 6.6% interest rate and 20% down so that means the property will be in a negative $1600 without even counting capEx, vacancies and other fees. 

Look at your expenses- if you have a car payment, credit card payment, etc, get rid of those.

So essentially, if you use that loan product, you wont have to worry about "using up" your low down payment loan quota.

one option is to continue renting out all four properties to cover mortgage payments and generate passive income.