Financing Options for Capital Expenditures

[Michael Springs]

We bought our first multifamily last year. We purchased "as is" on a nearly turn-key property. The roof is nearing it's end of life, a water, and gutters need replacing. Besides the fact we didn't walk into this with a huge chunk of money in reserves. We have solid equity after the first year and could force quite a bit more with some improvements. We are able to pay cash for most of the projects, but we are hoping to finance certain projects with better terms. What are some financing options that seems to work well for y'all?*

* I am still working through The Book on Rental Property Investing. What I am learning is that we should have had a bit more in reserves. But I still thing there is a clever way to do this. 

[Nathan Gesner]

If it's not leaking, you don't have to replace it yet. Figure out a side hustle, work more hours, or whatever you need to do to save up the money. Pay for the roof when the money is saved up. If you're financing capex or maintenance then you've made a mistake. I would sell everything but the kids, work a part-time job, work more hours at your W-2 job, or get a side hustle before paying for a roof with a credit card unless it were for just a few months of interest.