Investor · Arlington, VA · Member since 2014 · 151 posts · 37 votes
Hey guys, I want to hear stories from some vets whom have been in in a situation where the cost of a renovation for a rental has dramatically exceeded the budget.
I started renovating one of my rentals and I am about 20k over what I allotted and essentially put all of that on credit. I have two strategies at the moment.
One just simply paying off the 0% CC monthly minimum and balance transferring to the next 0% card over and over.
Second is to pay it via a HELOC on another property (this prop is paid off).
I do have a third method being cash out refi the property that was renovated, however I am a bit hesitant on this one because I do want to wait another 2 years for a shopping center to be built to be able to get a better appraisal.
I'm sure for people who have been in the game for a while, something like this has occurred before. Lets hear what you went though to get yourself out of a sticky situation.
I'm in a similar situation. I'm going to be 20k over budget on my rental renovation also. I plan on doing a cash out refi. To pay off as much of the credit card debt as possible. Then paying as much as I can each month on the 0% card. I'd say refi now because rates are so low. You can always refi later if rates stay low or your value climbs once that shopping center goes in.