Home improvement loan or cash

[Richard Arden]

Hello,

I am about to close on my first property, a house hack. I'm having some trouble deciding on weather I should take a home improvement loan out to take care of the rehab or just pay with my own cash. i plan on doing a Refi upon completion.

Thank you

[Dan Weber]

You need to deal in worst case scenarios. If the house doesn't appraise for what you project it will and you can't get all your money back out of the house post rehab, are you going to be strapped for cash and in a poor financial position? Will you be able to manage the monthly payment on the home improvement loan? You need to assess your financial position and figure out what your goals are and what risk you would be best suited to handle if you can't get all of your money back.