Cash Out Refi Scenario Question

[Dakota Mivshek]

Hi there - wanted to pose a real life scenario to all you creative thinkers out there. 

6 months ago, bought a 3 bd/2bath house for $465k, with a Mortgage equaling to $424k (9% down). It appraised for $485k. 

Fast forward to today - our detached two car garage has almost been finished into a permitted, quite awesome, ADU - 1 bed/1 bath. The ADU will rent beginning march 1st for $1,400. In order to complete this ADU, a family member lent $65k for all costs to finish.

What options do you all see to pull out the $65k cost of construction and repay my family member immediately, or very quickly? Let's assume the new value of the property is $550k - $575k (conforming loan limit in our county is $453k)

Appreciate any help!!! Cash out Refi? Heloc? 

Keywords

Portland 

re-fi 

Lending