100% equity, but no cash for rehab.

[Andrew Chapman]

Hello, I have 100% equity in my first BRRR investment property, but not enough cash for a rehab to reach comps. I currently have no income, but an excellent score. I am struggling to decide the best path/strategy to acquire a loan for more rehab cash. HM lender/Heloc/dscr/etc.

[Jacob St. Martin]

Hello Andrew, when you say you have 100% equity I am assuming that you mean that you have bought this house with cash but do not have any cash left to do the rehab. Hopefully you have run the numbers and are confident that after doing the rehab you will be able to pull out all of the money that you spent on the rehab + some holding costs. If this is the case then you are actually in a good spot because there are a lot of options. You could get a hard money loan for the rehab and then pay off that loan for the refinance, if it is light rehab work you could try to finance the rehab through credit cards that have 0% interest for the first year, you could try to tap into the equity from another property through a heloc or cash out refi, etc. I am not sure that a lender is going to want to do a heloc on the house before it is renovated because they want collateral that they could easily sell if you default