Seeking Advice on Financing a $20K Renovation for Investment Property in Michigan

[Luca Giani]

Hello,

I’m currently looking for advice on financing a $20,000 renovation for an investment property in Michigan. The property is not owner-occupied, and I have good credit as well as some equity in the property. The work is necessary to improve the property's value and cash flow potential.

I’m considering a few different financing options but would appreciate insights from the community on what would be most suitable for my situation:

• Personal Loan: Given that my renovation budget is $20,000, I’m wondering if a personal loan could be a feasible option.

• HELOC: If available for investment properties, this could be a good way to leverage the equity I already have in the property. Any recommendations for lenders who work with investment properties in Michigan?

• Hard Money Loan: I’m open to hard money lenders, though I’ve heard that they can have higher interest rates. Would a loan of this size be reasonable for this type of financing?

• Cash-Out Refinance: Not sure if this would be worthwhile given the size of the renovation, but I’m open to suggestions.

I’m looking for something that will be fast, with reasonable terms. Ideally, I would like to avoid refinancing my entire property unless it offers a clear benefit.

If anyone has experience with these types of financing options, especially in Michigan, I’d greatly appreciate hearing your thoughts. Additionally, if you know any reputable lenders or services in Michigan that provide these financing options for investment properties, that would be incredibly helpful.

Thanks in advance for your time and assistance!

[Drew Sygit]

Wouldn't get your hopes up about a HELOC on a rental.
- Most lenders will only go to a total of 65% , including your first mortgage.

Hard Money doesn't really make sense in your case.

Personal loan, credit card, etc. probably makes the most amount of sense, but make SURE you have a payoff plan!

Something no one mentioned yet - it appears you plan to do $20k improvements on an exiting rental. WHY?
- That seems pretty high.
- Curious what specific improvements you plan and when your calculations show you will recover this investment?