First Purchase - BRRRR with HomeStyle Loan?

[Harrison Melton]

Hello all,

I am interested in purchasing out-of-state buy-and-hold rentals using the BRRRR strategy, and had a question about financing. Even in the market I'm looking at (with plenty of SFR's below $50k) I'm not quite able to do a downpayment and a renovation with my own money. Last night and this morning I read up a bit on FNMA HomeStyle loans. Does anyone have experience using those with the BRRRR strategy? I read that banks don't like having them paid off early, as the banks have to pay fees if the loan is paid off within 180 days (I'm assuming the "refinance" portion of BRRRR would result in these fees). Would it be better for me to try to find private money (and if so, any advice on how to do that)?

This would be the first mortgage I've ever had, so I'm a bit shaky, currently, on how the whole thing works.