Question about rehabs

[Tia Wilson]

I'm still saving for my first property but perfecting my deal analyzing in the process.

A lot of homes I see need a little cosmetic rehab work. Who knows what else is discovered after inspection.

My question is, how do I pay for rehab cost? Do I factor in cost with my conventional loan? (Purchase price + rehab costs) or do I have to get a conventional loan plus a rehab loan?

Thank you, you guys are awesome.

[Taylor Hudgins]

@Tia Wilson Congrats on working towards your first investment!  It's a huge step!!

It really depends on how you set it up.  Many banks will have a conventional loan for the purchase and then a rehab loan separately.  You could also look for a commercial real estate loan which raps both the purchase and rehab into one loan.

Hard money lenders tend to also rap both into one lump sum loan if you're looking to go that direction.  Have you had a chance to talk to any of the local banks in your area?  That may be a great way to start!