Overwhelmed - Personal/Heloc/HomeImprovement Loan?

[inix]

Greetings all, long time reader, would appreciate your advice/expertise for loan information!

I recently inherited a 3br 1.5ba propertly that's valued on taxes at $64,205. Unfortunately it has some expenses to consider

• It's is in desperate need of upgrading including a new roof, central air installation, new windows, etc.
• The propery needs 10+ pine trees removed, a new fence, etc.
• The loan would definitely need to be desktop appraisal as it looks a bit run down and the yard needs TLC
• Otherwise the foundation/bones of the house are great.

I'm unsure of how much all of that will cost in totality but I imagine it's going to be quite a bit (the trees alone are going to be 7-10k, the roof I've been told ranges between 18-27k, etc) so I'm guestimating I will need at least $100k to accomplish everything I want to do to it. In my mind I'm willing to go in to debt on improving it. My rent is set to increase from $700/m (3yr agreement which was awesome but is now under new management) to $1097/m in 7mo. I'd rather prepare to start paying a loan amount akin to a mortage instead of rent at that rate.

From what I gather I believe I need to get a HELOC for what I can (but since the value is very low the loan amount would be very low as well) and the rest perhaps a home improvement or personal loan? I'm a bit overwhelmed at what precisely is my best move.

Here are some additional stats to consider if needed?:

• Income: $51k/yr
• Bills: $1,050/mo all in (rent, bills, food, gas, etc)
• Credit Scores: 710-720 (haven't done a CCT in a while, going off CK currently)
• Debt: $0 (was 12k a few months ago on CC's, paid it down aggressively, score is still recovering I think)
• Payment History: 99% (missed one Discover payment in 2018, sadface)
• AAoA: 3yr 6mo
• Accounts: 17 (12 open, 5 closed) of those closed 2 were auto loans both paid off early, 3 were cards I forgot to take out of the sock drawer.
• Recently Opened Accounts: 2 CC's a few months ago before I was informed about the rent increase, otherwise I would have never done so
• Hard Inquiries: 5

I have no savings currently as I've been paying down debt aggressively but now that I'm entirely out of debt I can use these next 6-7mo to save 12-14k at current rate. What would my best path forward be to get a loan for $60-100k to repair that property?

If you were in my shoes what would you do, thank you for any feedback/advice!?

[kg006]

I did a HELOC through Discover for one of my properties and they gave me way more than I thought they would, remember the taxable value is always lower than the market value and thats what they will look at.

good luck

[URHomeInvestments]

I'd go to community banks and credit unions near the property, if I had a similar situation.  I'd pull my own FICO and call around, asking "With my score of ### what rates and terms can you give me for a HELOC on this property?"  Ask if they use automated underwriting or if you require an appraisal.  If automated, I'd look to use a line of credit to do the remodeling.  When done, have the house appraised at the new higher value, and seek a 30 year fixed mortgage.  Pay off the line.  Rent the house out or sell it.

[NoMoreE46]

It is not clear whether you plan to live in it or rent it in (about 7 months).  

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@inix wrote:

Greetings all, long time reader, would appreciate your advice/expertise for loan information!

I recently inherited a 3br 1.5ba propertly that's valued on taxes at $64,205. Unfortunately it has some expenses to consider

• It's is in desperate need of upgrading including a new roof, central air installation, new windows, etc.
• The propery needs 10+ pine trees removed, a new fence, etc.
• The loan would definitely need to be desktop appraisal as it looks a bit run down and the yard needs TLC
• Otherwise the foundation/bones of the house are great.

I'm unsure of how much all of that will cost in totality but I imagine it's going to be quite a bit (the trees alone are going to be 7-10k, the roof I've been told ranges between 18-27k, etc) so I'm guestimating I will need at least $100k to accomplish everything I want to do to it. In my mind I'm willing to go in to debt on improving it. My rent is set to increase from $700/m (3yr agreement which was awesome but is now under new management) to $1097/m in 7mo. I'd rather prepare to start paying a loan amount akin to a mortage instead of rent at that rate.

From what I gather I believe I need to get a HELOC for what I can (but since the value is very low the loan amount would be very low as well) and the rest perhaps a home improvement or personal loan? I'm a bit overwhelmed at what precisely is my best move.

Here are some additional stats to consider if needed?:

• Income: $51k/yr
• Bills: $1,050/mo all in (rent, bills, food, gas, etc)
• Credit Scores: 710-720 (haven't done a CCT in a while, going off CK currently)
• Debt: $0 (was 12k a few months ago on CC's, paid it down aggressively, score is still recovering I think)
• Payment History: 99% (missed one Discover payment in 2018, sadface)
• AAoA: 3yr 6mo
• Accounts: 17 (12 open, 5 closed) of those closed 2 were auto loans both paid off early, 3 were cards I forgot to take out of the sock drawer.
• Recently Opened Accounts: 2 CC's a few months ago before I was informed about the rent increase, otherwise I would have never done so
• Hard Inquiries: 5

I have no savings currently as I've been paying down debt aggressively but now that I'm entirely out of debt I can use these next 6-7mo to save 12-14k at current rate. What would my best path forward be to get a loan for $60-100k to repair that property?

If you were in my shoes what would you do, thank you for any feedback/advice!?

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