What would you do after paying all cash

Question

What are your recommendations if you were to use your liquid cash on a property but it needed rehab. And you didnt have any liquid cash left after purchase.

1. Heloc or refi

2. How much would yoy pay someone to remove the junk from property

3. Where would you find someone to do the finish work

4. would you seek out a JV

any referrals or suggestions please.

Tamara Deering · Answer

@Kim Snyder

Typically if this is an investment property a HELOC isn't available.  You may be able to get a cash out refi through a hard money lender but probably not through a conventional lender.  The trash out costs will vary depending on how good the junk is.  You can find charities that will do the work for less than private companies because it's part of their back to work initiatives.  As for the finish work, again it depends on if you are talking finish carpentry or painting, what level of finish you want, etc.

I don't want to be mean or rain on your parade but I'm hoping these are hypothetical questions because if you purchased a property before you answered these questions you are in for a bumpy ride.  These questions especially about the rehab work should have been answered before you purchased the house because they are key to determining how much you should pay.  You can try and find a JV but you may be better off selling the project outright and starting over with a partner.  You might also think about doing the work yourself as you can afford it because that is the main luxury that paying cash for a property affords you.

Good luck.

Cameron Tope · Answer

How much of a rehab? If it's 10-20k I would raise it from family and friends or borrow it from my 401k.

If the property is already in pretty decent shape you could do a cash out refinance or HELOC but then you'll have to refi again if you want more cash out after the rehab.

Get some referrals on contractors in your area and get a few bids.

Best of luck!