Need $10k to renovate apartment, but using 68% CL & only 7 months into FHA loan; what to do?

[visualfxpro]

Trying to decide on best tactic to get $10k for renovations which is critical to get done ASAP but I'm concerned about aproval odds. Looking into the following:

Consolidate my credit into one loan (Amazon 90% limit/Chase (60%)/Navy Federal(60%))

Apply for PENFED high limit card for renovation work

Apply for personal loan to cover renovations

Do both of above two but split the burden (50% loan/50% new credit card)

Here are the facts:

-Fundamental plan is to flip rental unit fast and get top rental value once tenant leaves (this will end my crisis as the house will then pay for iteself)

-I have prime realestate in an area with a serious inventory problem (apartments rent almost immediatly and I'm in the best part of town where there are at most 15-20 total units, none of which are on the market now)

-My funds are super low since I just went 7 months with no rent from two tenants in the house I just bought (One is leaving soon)

-FICO is 670 with 67% CL used

-I owe $24k on car loan with NFCU

-I owe $650k on 4 family home I just purchased
-I need a van for work since last one died, so looking at $18k loan on work van

So we are speaking about adding two more loans when my debt is already high, BUT doing so will quickly pay for itself. In 3-6 months, if nothing crazy happens, all my existing debt will be paid off. If I lose my job, then I'll still have the debt, but the house will sustain me as I look for work, which would quickly allow me to pay off debt.

So normally I'd say this is risky move, but considering I have a unit that will rent very quickly and for money that will quickly pay for itself in 6 months becase with house paying for itself, I can put 80% of my salary into paying debt.

However, if I don't pull this off and fast, I'm going to be in trouble VERY fast since the mortgage is burying me with 2 tenants not paying. I need to go from net negative to net positive FAST or it all falls apart. The renovation does that.

Finally, the apartment is in BAD shape. If I spend just a few thousand on basics, I'll make $400 less a month and I'll quickly default if I lose my job. CLEARLY I'm going to be SUPER picky about who I rent too as the next tenant can screw me too.

Also if I apply for these loans/card....which one do I do first?

[CreditCuriosity]

Going to be hard to get what you need with your stats/utilization, etc..  Terms are really going to stink on PL if could get approved for that and CC I wouldn't count on that being approved at all with current utilization.  Just my 2 cents.  Possibly take out money against home you just purchased if possible if in positive equity?

edit you signature shows 10% DTI ratio.. that has to be outdated if you are carrying above mentioned debt/utilization.

[visualfxpro]

What about a FHA 203k loan?

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@visualfxpro wrote:

Trying to decide on best tactic to get $10k for renovations which is critical to get done ASAP but I'm concerned about aproval odds. Looking into the following:

Consolidate my credit into one loan (Amazon 90% limit/Chase (60%)/Navy Federal(60%))

Apply for PENFED high limit card for renovation work

Apply for personal loan to cover renovations

Do both of above two but split the burden (50% loan/50% new credit card)

Here are the facts:

-Fundamental plan is to flip rental unit fast and get top rental value once tenant leaves (this will end my crisis as the house will then pay for iteself)

-I have prime realestate in an area with a serious inventory problem (apartments rent almost immediatly and I'm in the best part of town where there are at most 15-20 total units, none of which are on the market now)

-My funds are super low since I just went 7 months with no rent from two tenants in the house I just bought (One is leaving soon)

-FICO is 670 with 67% CL used

-I owe $24k on car loan with NFCU

-I owe $650k on 4 family home I just purchased
-I need a van for work since last one died, so looking at $18k loan on work van

So we are speaking about adding two more loans when my debt is already high, BUT doing so will quickly pay for itself. In 3-6 months, if nothing crazy happens, all my existing debt will be paid off. If I lose my job, then I'll still have the debt, but the house will sustain me as I look for work, which would quickly allow me to pay off debt.

So normally I'd say this is risky move, but considering I have a unit that will rent very quickly and for money that will quickly pay for itself in 6 months becase with house paying for itself, I can put 80% of my salary into paying debt.

However, if I don't pull this off and fast, I'm going to be in trouble VERY fast since the mortgage is burying me with 2 tenants not paying. I need to go from net negative to net positive FAST or it all falls apart. The renovation does that.

Finally, the apartment is in BAD shape. If I spend just a few thousand on basics, I'll make $400 less a month and I'll quickly default if I lose my job. CLEARLY I'm going to be SUPER picky about who I rent too as the next tenant can screw me too.

Also if I apply for these loans/card....which one do I do first?

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[SouthJamaica]

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@visualfxpro wrote:

Trying to decide on best tactic to get $10k for renovations which is critical to get done ASAP but I'm concerned about aproval odds. Looking into the following:

Consolidate my credit into one loan (Amazon 90% limit/Chase (60%)/Navy Federal(60%))

Apply for PENFED high limit card for renovation work

Apply for personal loan to cover renovations

Do both of above two but split the burden (50% loan/50% new credit card)

Here are the facts:

-Fundamental plan is to flip rental unit fast and get top rental value once tenant leaves (this will end my crisis as the house will then pay for iteself)

-I have prime realestate in an area with a serious inventory problem (apartments rent almost immediatly and I'm in the best part of town where there are at most 15-20 total units, none of which are on the market now)

-My funds are super low since I just went 7 months with no rent from two tenants in the house I just bought (One is leaving soon)

-FICO is 670 with 67% CL used

-I owe $24k on car loan with NFCU

-I owe $650k on 4 family home I just purchased
-I need a van for work since last one died, so looking at $18k loan on work van

So we are speaking about adding two more loans when my debt is already high, BUT doing so will quickly pay for itself. In 3-6 months, if nothing crazy happens, all my existing debt will be paid off. If I lose my job, then I'll still have the debt, but the house will sustain me as I look for work, which would quickly allow me to pay off debt.

So normally I'd say this is risky move, but considering I have a unit that will rent very quickly and for money that will quickly pay for itself in 6 months becase with house paying for itself, I can put 80% of my salary into paying debt.

However, if I don't pull this off and fast, I'm going to be in trouble VERY fast since the mortgage is burying me with 2 tenants not paying. I need to go from net negative to net positive FAST or it all falls apart. The renovation does that.

Finally, the apartment is in BAD shape. If I spend just a few thousand on basics, I'll make $400 less a month and I'll quickly default if I lose my job. CLEARLY I'm going to be SUPER picky about who I rent too as the next tenant can screw me too.

Also if I apply for these loans/card....which one do I do first?

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1.  It sounds like you're using personal accounts for business expenses; that's a mistake on a number of fronts. It causes legal, tax, accounting, and bookkeeping problems, and may wind up causing your accounts to get closed when the lenders figure it out.

2.  I don't think more borrowing will help you at this point, because you won't be able to get any kind of decent terms.

3.  I think you need to sell something.

[JoeRockhead]

I'm with the others here as with your current UTI and such I just don't see getting approved for more credit with decent enough terms to help you, if you can get an approval at all. You're attempting to rationalize many scenarios that just aren't realistic and have an awful lot of uncertainty when it comes to everything falling in place as you've envisioned it. There are a lot of what ifs here. The FHA 203K might work, If you live at the property, but whether you could qualify with your current credit status is the question.

It also sounds like if everything doesn't fall into place just right, and at the right time, you're in big trouble. Your best option may be, as suggested to sell something, get out from under it so you can regroup, and come back at it when you're in a more stable situation. Wish you all the best of luck.

[Rogue46]

I'd have to agree with what the others said. It sounds like you're not in a very good place financially and most likely getting into more trouble here by betting on everything working out as planned which with all the moving parts you have going on would be a gamble. You also mentioned your employment isn't stable which is a big concern adding more debt and possibly not having means to pay it off. To me it just sounds very risky.