I paid cash for a HUD rehab that I paid $38K . Retail repaired value $70k+ . I have the funds to rehab it but I found another deal that I would like to develope at this time also. Here’s my situation. The other deal is a vacant commercial prop.I have the cash to buy the comm. prop now but if I do I will not have any cash to do rehab on house or develop the comm. prop . I know Im trying to do two things at once which I can do time wise but how do I do it finance wise. Here is what Im thinking. Take a construction loan to purchase the comm. prop (Warehouse with 33 acreage I want to convert to storage) and use my cash to rehab the house and pay my holding costs until storage is done and producing income . Or . Pay cash for comm. prop ( which would give me a better buy price)and then take a heloc on it (if allowed since it is vacant ) to do the storage setup and rehab the house. Im concerned that my current heloc of $200K (which is where Im getting the cash to buy ) will not allow me to get additional financing due to debt ratio issues.Please help? Thank You ;D
I said Please?