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Improving an investment property

Hi all,

I have a home that used to be my primary home, but is now an investment property. I am considering making significant improvements to the property (like adding on a master suite). How might I finance this? One option I was considering is forming an LLC, and then taking out a business loan. Any suggestions?

 
  • July 03 2013 - Near N Valley
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Answers (3)

Steve you're exactly right. You would have to have at least 25% in order to take cash out of the home. This would also depend on a current appraisal. With rates on the rise I have been starting to see values of homes doing the same. Still might be something to look into. Otherwise the renovations might have to be out of pocket, or a personal loan.

I am a loan officer, if you have any other questions or concerns please don't hesitate to reach me privately through my Zillow account.

Thanks!

  • July 03 2013
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Profile picture for archsteve
Good point. Now that it is an investment property, getting a loan requires maintaining equity of 75%. I don't think we have that now, but can that refinance be based on the post construction value?

Thanks for the insight. Also, are you a banker or something?
  • July 03 2013
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With rates being as low as what they are have you considered pulling from the equity in the property?

The business loan isn't a bad idea either, I just think a refi might be easier to obtain.
  • July 03 2013
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