Best way to get money for renovations

[Travis Turnbull]

Hi everyone,

Here is a little background on a vacation rental I have already purchased, that I could use some extra money for renovations on. I bought this property back in November right after the hurricane in Florida and had to put a new roof on it immediately. However, even before putting the new roof on it appraised for about $10,000 more than I bought it for. I bought the property for $355,000 and most properties with similar specs are selling in my neighborhood anywhere from $400,000 to $570,000. I expect my ARV to be somewhere around $450,000-$475,000 after putting another $30-40k into it(I have already put in roughly $15k in for renovations) I bought it with the idea to use the BRRRR strategy, but have gotten thrown a bit off -track with everything in Florida being crazy since the hurricane, so I rented it as a 6 month rental. That rental will be up in june and In the meantime some unfortunate things have happened with my job. This has resulted in me not getting paid the money that I was supposed to get, which I was going to use for these renovations. I need to reposition this property so that I can get higher rents during the winter months and also pull my money back out after the cash out refi so that I can scale and keep buying properties and not stretch myself so thin financially. What are my best options? Should I use a HELOC? I also have a couple friends who want to get into real estate investing and have offered to loan me the money with interest. Is that something I should explore? I do not have any experience in getting loans from friends, family or a private lender and am a bit hesitant in doing so and don't know much about structuring a deal like that. I currently have two successful deals under my belt in the last year, in buy and holds with the BRRRR strategy, but all funded with my own money.

Please let me know your thoughts I still consider myself a newbie at this point and am eager to learn about all of my options. Thanks!

-Travis

[David Fernandez]

@Travis Turnbull, have you thought about using a credit card with 0% APR for the first 6-18 months?

I use 0% APR credit cards to pay for some of my renovations. It is the cheapest money you can get.

Of course, only use this method if you are disciplined (you will pay it off after you refi) and you are sure about the ARV and refi possibilities. Otherwise, you will get stuck with a very high interest loan.