Rehab funding for rental property

Starting Out
7yFollow

Rehab funding for rental property

Taurus Whitehead
Member since 2019 · 2 posts · 0 votes

My name is Taurus Whitehead and I own a property free & clear of any mortgage or tax liens why can't I find funds to rehab my property then close with a refinance mortgage to pay back the rehab funds. 

0Reply
17 views

3 Replies

Jump to latestLatest
  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    7y

    Because most rehab loans expect the property to be sold at the end, you might be better off with a HELOC or business LOC.

    1Reply
  • Taurus Whitehead
    OP
    Member since 2019 · 2 posts · 0 votes
    7y

    Thanks Mr. K. I'll give the HELOC a try although I'm not living there I guess I can say I am ???

    0Reply
  • Sean BlomquistPro Member
    Lender · Blaine, MN · Member since 2013 · 303 posts · 131 votes
    7y

    If you own it free and clear as a rental, a Hard Money Lender should be able to give you the funds to rehab it. Once the rehab is done, just refinance with a traditional lender to pay the HML back.

    If it is your personal residence, a HML won't be able to lend on it. Then you would just do a HELOC.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free