How to finance rehab for owned distressed property?

[Grady Dennis]

I was gifted my grandparents old home and now own it outright but it is in disrepair. I have had a few contractors quote between $30-50k for the renovation. I am having trouble finding financing for this amount and was wondering what some ideas would be. As is value sits around $40k with an ARV of $140k. The low "as is" value has put off a few local credit unions. Most questions and answers on the forum I have seen involve financing the purchase of the property as well as the rehab, but I already own the property outright. I do not have the cash currently to pay for the rehab. Should I continue with local credit unions? Zero interest credit cards then finance traditionally on the ARV to pay off the credit cards? Or is there a creative solution I'm not seeing?

The home will be used as a rental. My parents have rented it out successfully for years but to lower quality tenants. I’d like to stabilize the property and attract a better tenant pool. I am located in Texas.

Thanks for all the responses!