Finding cash for renovations

[Nina Diehl]

Hello, everyone,
It’s the night before closing on our first investment property. I’m freaking out a bit over how to pay for needed work and renovations to the property before we can put it on the rental market. I miscalculated the amount due at close (I estimated 4% closing costs on the amount loaned, but I am paying 4% closing costs on the price of the house). Now I’m nervous about having enough cash reserves for these repairs. 

I’m considering a few options:

1) pulling money from my pension or 403bs knowing they will be taxed at 10%
2) paying for only the most necessary repairs and putting the house on the market

Any thoughts?

[Jill F.]

If you have decent personal credit, Home depot has a 'project loan' that lets you borrow up to 55k with a 6 month interest only purchases period followed by a 5-7 year fixed rate loan pay off period. We've renovated over 30 units with home depot project loans. You can apply from the pro xtra website. We've found these loans to be very convenient for our renovation projects.