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Can I borrow against my rental property to remodel it?

I have an investment property I bought out of foreclosure and it is paid for. It needs quite a bit of work to get it back into rentable condition and I want to get it done fast, as in hire a contractor, instead of doing it myself. For this, I would need to borrow money and was wondering if I can borrow against the property and use the rental income to pay it back. What would be the best option?
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February 01 2012 - Hattiesburg
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Profile picture for shickson
I'm also looking to borrow against a rental property. I have roughly 50 to 70k in equity. What are my options?
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January 21
Talk to a local mortgage broker
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February 01 2012
Sounds like you may be able to use the Fannie Mae Homestyle programs. The amount of the repairs cannot exceed 50% of the as completed value, minimum credit score = 720, 740 if self-employed. Let me know if this is something that may interest you.

Thanks,

Mark
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February 01 2012
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And as we all know, FHA 203K is available for investment properties.
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February 01 2012
The  FHA 203K allows for you to include the cost of the repairs into your loan.This is perhaps your best route.
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February 01 2012
Profile picture for shapiroamg

If the property is in rough shape, getting  a conventional loan may be an issue. There are also prohibitions in place on cash out refinancing within a certain period after purchasing. You should look into rehab/constuction loans locally.

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February 01 2012
That is a great idea.  What is the loan amount the you would be requesting?
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February 01 2012
 
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Can I borrow against my rental property to remodel it?
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Latest answer by shickson
January 21 | 7 answers
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