All Forum Posts by: Richard Canchola

thanks for all the responses! I was busy moving in more renters! 

that was a big concern i had as well.. maxing out credit cards might even prevent me from getting the refi in the first place.

The HELOC was my next option. but I know hardly anything about the product so I didn't want to rush in to something that I'm uneducated about.

a little more about the property: we got keys for 200k and it appraised for 220k at close. we put about 20k in repairs already and hoping to do a 10k kitchen update as well as put some finishing touches on bathrooms. this was a year and a half ago. comps are now showing from 250k-300k. along with the cash out I'm wanting to buy another property.

I own a property that is 2 houses on 1 lot. My family lives in 1 and I finished rehabbing the rental in the first 6 months and have been renting it out while rehabbing the 2nd. I plan to completely overhaul the kitchen with new cabinets and appliances because at this point it is livable but not rentable (if that makes sense).

My question is: I want to refinance in order to pay for the remodel but should I max out credit cards to pay for the initial costs and then refinance? or should I refinance now and use the cash out to pay for the remodel after? 

My thinking is that the property would appraise for more after the remodel and I would get more money from the cash-out. Am I thinking about this correctly? or is there something I'm missing? Is this even an option or am I overthinking it? Thanks