mInitially, my plan was to sell the inherited property, walk away with whatever equity I could, and roll that into another investment.
But after running the numbers, I started looking at a BRRRR approach instead — finish the rehab, rent it through Section 8, stabilize it, then refinance and use that capital to acquire property #2.
The challenge I’m running into is financing the completion. Based on conversations with local banks, it sounds like my only realistic lending option may be hard money. With current rates, I’m not convinced the numbers would still make sense once carrying costs and refinance timing are factored in.
I do have about $30,000 coming in by summer. My original thought was to:
Set aside solid reserves for the property
Use part of that cash to strengthen the refinance position
Combine refinance proceeds + remaining cash to fund acquisition #2
Now I’m reassessing. If hard money is the only path to finish and stabilize, I need to decide whether:
The BRRRR still works under those terms
Selling as-is (or lightly finished) makes more sense
There’s another financing structure I haven’t considered
We don’t have a lot of capital, so this $30k is likely the last time we’ll have that level of liquidity available at once. I want to maximize it — not deploy it in a way that limits future options or creates unnecessary risk.
For those who’ve been in a similar position:
Would you push forward with high-rate short-term financing to complete the BRRRR?
@Benjamin Aaker i was going to coordinate the work. i was gonna get a company that handles the mep work to go in and get those done then i have a guy who can handle the rest.