Renovation Financing for Investment Properties

[Jackson Sipperly]

My partner and I are looking to invest in our first investment property. We have enough cash for a good down payment on a property and out business plan is to use financing to acquire under valued properties and then to add value via rehab before renting. So basically a long term BRRR strategy.

We're trying to decide on the best financing strategy for rehabbing properties. I've looked a lot at renovation loans like the Homestyle and Choice Renovation loans so we can bundle in the rehab costs to our mortgage. Does anyone have experience using these loans or similar products to rehab? Would love to hear firsthand from someone who has. Also, I could've sworn I saw online a construction loan model that required interest only payments during the rehab phase. Not sure if I'm crazy and was just making that up. Any help is greatly appreciated!