How to raise money for Rental property rehab?

[Samer Abbas]

Hi,

I am in the process of buying a fourplex for $275,000 and I only have money for down payment and closing costs. I will probably have $100 cash flow with current rents, and I want to rehab all the units to increase my cashflow by increasing rent but I don’t have any money for rehab.

How can I raise money for rehab?

I have family and friends who will be able to loan me money for rehab but how do I add them as a partner? Do I give them equity or do I share money from cash flow? What kind of return should I offer?

I don’t want to flip. I want to buy and hold.

I would really appreciate your suggestions.

Thank you