Use all the money in the bank or...???

[Alethea Sealy]

Hi community. I have a disagreement with my partner. We have $35K in one of the bank accounts. But there is a property we just stumbled upon in Detroit for $25K. We want to offer $20K; so with rehab costs starting at $15K we will have zero in the bank. 

I am trying to tell my partner that I prefer to find financing whether it is for a portion or the total amount. He says the property may disappear and we will miss out on a deal. I don't want us to use all our cashflow. His argument is that the property will generate $4000 in cashflow. But my argument is that the rehab costs can go up and we will be stuck trying to find capital anyhow. 

In fact this is the problem right now, we started a project (a duplex) working on the projection that the renter income from the first finished unit will pay toward the completion of the second unit. We used all the money in the bank. Well, the rehab costs went up because the contractor did not listen and he has used the money working on two units simultaneously. Now I am scrambling trying to find the rest of the funding for this project. 

Thoughts or experience community on how to go about this the right way?