My sister and I co-own a house with my ex partner. I am currently living in the house with my two kids but can't really afford to be as it's a big house and I'm struggling to pay the full mortgage amount with my very limited income. I had the idea that a renovation to effectively cut our house in half would be a worthwhile investment, for which we'd need to borrow more money for, but once we got a tenant for the self-contained flat this would probably be paid off within five years, thereby reducing our total mortgage from 30 to about 15 years.
My sister is also a sole mama and has recently had to stop working due to not having any available Childcare. So the only one of us three with a good, stable income is my ex, but he has refused to sign anything that will enable us to get more money, after which, once the reno is done, we can use the rental income to refinance our home loan without him on the title. But he won't do it and we were told by our current lender that without him we can't borrow any more money.
We need about $25K, which we will be paying back with a good rental return in a majorly sought-after and very expensive area of the country.
Does anybody have any experience or advice on getting a small "top-up" loan of $25K with quite a limited combined income? I'm sure it can be done, just not sure where to start with it all... TIA