Single Family Residence with Equity. Heloc Refi of Sell
I have a single family residence that I am looking to convert into a tri plex. I have 3 ideas to do this with zero out of pocket money. I owe $115,000 it appraises now at $330,000. Here are my ideas…… should I get a Heloc to fund the upgrades, refinance to pull cash out for this and other deals, or sell to my life partner (unmarried) very good credit. If I sell could she look at at 203k? That also removes an FHA off of my credit. Your thoughts.
The way I see it, you've got a couple of options:
1.) Get your HELOC. That's different than a cash out refi though, as it's a line of credit, rather than pulling out cash from your home. This is usually provided to you at a lower cost than a cash out refi through a local credit union, for example. It's a great option if you have cash on hand to pay that line of credit down as you're making renovations.
2.) Get a cash out refi through a lender. This will usually have a higher rate than a HELOC, but you will actually be given cash to do your renovations which allows you to have a budget to which you can adhere and move forward that way.
3.) Selling to your life partner is also an option, but if you're both going to keep the house, I don't really know if that's the most viable option for either of you. If you're looking to add them to or change title in any way, you can accomplish this for about $200-$300 through a title company. Might be easier than changing everything.
I hope this helps and I look forward to hearing an update from you on what you decided! GO GROW YOUR REAL ESTATE EMPIRE! :)