remodel and refinance



Remodeling my home. Large 6 bedroom, 3 stories, big lot.

Splitting it up into 3 rentable units, and building a small 400sqft studio (permitted as a pool house).
Plenty of parking space.

I'm 40% through it. About to take out a loan to finish what's left.

I'm hoping for 100% LTV cash out refi. I’ve spoken to a bank here (Arizona), and they said they do 100% cash-out refi. (money could be used for anything).

120% cash-out refi. (if the money is used for remodel work.

I don't plan on selling the place. I plan on, living in one unit, and renting out the other 3. (lower my cost of living).

I have my own small business and plan on leveraging business credit, personal credit, and this cash from the refi. To accumulate as much capital as I can get my hands on, to purchase an existing business with a SBA 7a loan. Basically for my down payment.

My uncertainty is in the refinance (after I’m done).

I was told elsewhere, that once its divided it would be considered a multi-unit (higher rates/lower ltv)?

So I was thinking about the following:
Finish the remodel. Leave the entrances between units open/not closed off (so as to still look like a single house).
Add a small kitchenette in each unit now or after the remodel?

Cosmetically, the place has been remodeled inside and out. Much nicer.

Now I’d like to structure the remaining remodel work, with correct planning for the following:

Qualify for as low rates as possible.

As much equity increase as possible.

Any help/advice would be much appreciated.

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
I specialize in Renovation loans which usually have much better rates than a typical cash out refinance. The great part about reno loans is that the value of the home is based upon what it will be AFTER the improvements are already made.

Give me a call - 619-379-8999 and I can explain the process in detail with you or shoot me an e-mail with your availability at [email protected]


LoanSafe Member
I don't have enough information about loans and mortgages. I am also going to renovate my house and also complete all the things that I need to start. I also hired labour from Fast Labour Hire to perform this work, but unfortunately, I don't have the money to pay them. Is there any type of loan that I can get to pay them off?

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Hi Jhonsonshan,
Renovation loans typically require contractor approval and vetting as well as reviewal of bids prior to the work being complete. If they aren't felons, have enough general liability insurance and are licensed contractors I'd be happy to see what can be done. Please feel free to contact me.