I recently purchased a foreclosed 4-Plex at a Sheriff Sale and currently 3 of the 4 units are occupied. I walked the outside of the property which looked great but until I gain access I have no idea what exactly will be need to be updated and/or repaired. I will receive the deed in about 4 weeks and then I will be able to enter the property with an inspector/contractor to see what’s needed. I paid cash for the property but don’t want to over extend myself by using additional cash to fund the repairs.
I'm looking for help on what you would suggest is the best way to secure money to fund the repairs? The mortgage lender for my primary residence says my name needs to be on the deed for 6 months to do a Cash Out Refi. Also, since 3 of the 4 units are occupied I plan to renovate the vacant unit then with turnover I will begin work on those units. My goal is to BRRRR 1-2 multifamily properties a year.
You could wait the 6 months and then do a cash out refi.
You could open a line of credit secured by your primary residence if you have enough equity.
You could take on a loan from a private lender and pay them off after you refi 6 months later.