Have you ever ran out of money on a rehab ?

[Robert Collins]

What are some ideas if you got to the point, you purchase your first buy & hold rental, your plan was to brrrr but you’ve ran out of money doing the repairs getting it rent ready , your 2 months in & things are getting super tight 😬

[Aaron Millis]

Hey @Robert Collins

My immediate thoughts are how good is your deal? If you plan on getting all your money back (or more) from the refi then you could look into finding a private loan to finish your project- and just pay them interest. 

Also if there's any chance that you already have a good chunk of equity in the home you could try to tap into that via HELOC or Home Equity Loan. That's the route that I went myself. I didn't have enough money to immediately do all the renovations on my recent purchase- but I was able to get a 20K heloc which has been a game changer.

Also also I'd recommend getting a Home Depot/Lowes card. I have both and if you use the card to make big purchases (for me its windows-kitchen cabinets+counter tops) they will likely offer you some sort of long term (6 months-2 years) interest free financing. 

By the time I'm done with my project I will have spent about $35,000 on credit between all those I suggested^- and it will only cost me about $300 in interest payments. I'm not a finance expert but it seems like a great option. Good luck!