Best Loan Product for Renovation for Rental

[John McCormack]

Situation: I have a 3/3 townhome located in South Florida that is paid off and owned by family member.  The purpose for this property will be to supplement their long term care.  I'm estimating around $75K for the renovation. If it were to sell today it would probably sell for the $300-330K range.

What would be the best loan product to get this done.  Feel free to call out the pros/cons of each. Maybe this is pretty simple answer but I always appreciate the depth of knowledge of BiggerPockets! Thanks much in advance.

[Devin Peterson]

Quote from @John McCormack:

Situation: I have a 3/3 townhome located in South Florida that is paid off and owned by family member.  The purpose for this property will be to supplement their long term care.  I'm estimating around $75K for the renovation. If it were to sell today it would probably sell for the $300-330K range.

What would be the best loan product to get this done.  Feel free to call out the pros/cons of each. Maybe this is pretty simple answer but I always appreciate the depth of knowledge of BiggerPockets! Thanks much in advance.

There exits several different loan products that enable you to borrow 100% of the renovation costs. It just depends on if we are talking owner occupied or non owner, which would be an investment. If it this is an investment purpose, you would utilize what is known as a bridge / hard money loan. You can generally borrower up to 75% of the after repair value. Happy to connect and cut this one up in more detail with you. Best of luck!