When purchasing and remodeling my properties
3 Replies
Joshua D.
Rental Property Investor from Pittsburgh, PA
posted over 3 years ago
So the initial purchase i use my lines of credit for he purchase or the property. Then I use all my rental income and cash from my business account to rehab it and when I run out I use more of the lines of credit. Am I doing this right or what I try and use my business account to keep from going into more debt and paying more interest. What’s the best way to do all this please?
Mike McCarthy
Investor from Philadelphia, Pennsylvania
replied over 3 years ago
Credit/loans are how many people do the initial purchase and reno until the refinance after 6 months.
If you're making money out of the deal, increasing equity, and getting most/all of your financed money back, you're doing it right.
You can always look for cheaper loans or hard money lenders if you're using credit cards with high rates. Also, I assume you're giving yourself some padding too in case things take longer or cost more.
But all in all, it sounds like you're doing fine.
Joshua D.
Rental Property Investor from Pittsburgh, PA
replied over 3 years ago
I don’t think I have to wait 6 months I can use my lines of credit from bank right away. Which I don’t use credit cards but only for business and pay off right away so I don’t get hit with the high interest using my lines of credit if need be which are 5% compared to credit cards which are a lot higher.
Jack Bobeck
Rental Property Investor from Jacksonville, FL
replied over 3 years ago
I am working to find a LOC for secondary properties we own. I think I have found some sources. I'd rather use the Line of Credit (LOC) than cards. It will cost be $99 every time I pull money out and then 4.49% on the term. No penalty to put back.
Once I find them, use a non-recourse loan for the property cash-out refi (70-75% LTV) and rent them out. That is the plan.