I’m new to this forum and looking for some creative investing ideas to finish a rehab project I started.
Here is my situation:
I purchased a 3-family house for $455k and am in the process of converting it into 3 seperate condos. I put 25% down ($113k) and took out a construction loan for $500k. The $500k was based on a 70% LTV of the after rehab value of the properties. $350k of the loan was for the house including closing costs and $150k was witheld for the construction/rehab costs.
Between monthly carrying costs, construction delays and additional work needing to be done to the property I am going to need an extra $90k to finish the project. The original bank appraisail of after rehab value was $715k in October of 2004. I believe the after rehab value (based on comps and realtor opinion) is closer to $760k.
My question is what are my options for obtaining the extra $90k to finish the project? I would like to avoid a HML because of the interest rate but I am not sure if a refinance w/cash out would be timeley and yield enough $$.
I would appreciate any input or suggestions on this matter.
thank you in advance,
Gregg