Updated over 7 years ago on . Most recent reply
Use equity for Rehab?
Buy and hold newbie here.
I recently closed on a 3/2 in Tampa with existing tenants (lease ends next month - they are moving). This property needs extensive remodel. Costs should be approx 20k.
I have 200K in equity on some other properties. Should I pull out some of this equity for the rehab, or use my own funds for the rehab? If I use my own cash, it would take a long time, perhaps 4-8 months to complete the work. I'm OK with this as I can float the payments. Or, would it be better to pull out some of my equity and rehab the place MUCH faster. I dont like the idea of using a Heloc but maybe my thinking is flawed. Any help appreciated!
Property - 3/2 in Tampa
Bought for 125k with 20% down (30yr @ 4.7%)
Rent = $1100
Cashflow = $248/mo
After Rehab rent = $1375
After rehab cashflow = $523/mo