All Forum Posts by: Brianna Lopez

Thank you both so much for the input! I had been leaning toward heloc but wanted to get other opinions as well. Much appreciated!

Looking for information regarding funding a home renovation project in order to start house hacking. Here are the details:
I recently purchased my first STR property. It's going well but I'm house poor and I don't want to touch my reserves. I have balances on my personal credit cards while I recoup cost of furnishing, so my credit is in the high 600s now (it's usually high 700s). The rental property was purchased through LLC which has a loan but does not have access yet to line of credit or credit card.

My primary residence is an end unit townhome in a desirable neighborhood outside DC. I'd like to turn my basement into a separate unit by adding an exterior door. I have two kids so I do not want strangers in my actual living space, but I would feel very comfortable with renting out my basement as a separate unit.

I feel like I am in a loop where I should pay down my credit cards before looking for funding... but using my basement as STR would help me pay down my credit cards faster and save up for the next project sooner.

What is the best way to get funding for this project? Should I look into loans that are specific to home renovation? Or a line of credit or home equity loan? Thanks for the input!

Does anyone have any tips on a lender or type of mortgage for a short-term rental that is based on cash flow instead of based on DTI and personal credit? I own my primary residence and still have a high balance on the mortgage. I have some $$ set aside for a down payment and want to buy my first rental property. Any advice??