?Creating Money for Rehab
You have to start somewhere. Well, I guess you also need money to start. I am under contract on a foreclosure in town, that I plan to fix and flip. I did my homework, I know my CMA, the house is in a great part of town (schools, parks, shopping), the house just needs some love. I plan to move into the foreclosure (property B), while I rent my SFH out (property A). I have a tenant lined up and it will cash flow slightly. Good to go with that.
Unfortunately I spent the majority of the cash I have on hand, on things like closing costs, and my down payment. Now I have property B which needs about 30k in rehab (I have a detailed budget with quotes). I am thinking of taking out 0% APR credit cards to pay for the rehab, and then selling the house, paying off the house note, and the credit cards before I am charged any interest and pocketing the difference. What other options are there?
What if I spend the rest of the cash I have on hand to make the biggest "bang for my buck", and instead of taking out credit cards, try and squeeze any equity out of it with a HELOC. I can use that money to pay for the rest of the rehab, and then sell property B, pay off both notes, and pocket the difference.
I know I should have 100% of the cash I needed to start and finish this project, but I needed to start somewhere. The rehab is for cosmetics, if it doesn't get done right away it will not affect my health or safety. Worst case I live in an ugly home for a while while I save back up.
I am looking for some creative ways to raise money to finish this rehab, sell, and start the process all over in about 12 months.