Different Ways of Financing

[Payten Mox]

Hey all BiggerPocketeers!

As the description says, (yes I know this is technically the BRRRR method..) What would you do? Let me give you some background of where I am in this ever so complicated journey.

Me: 20 years old making 28k a year. Here in northern IN the market is HOT! Renting out a bedroom in my girlfriend's parent's house. I have never purchased a house and I am looking into the best way to make it so the first house can be used as a rental property after a couple years after I have finished my med degree. Now with that being said, what (in your opinion) is the best way to go about? Should I use a Hard Money Lender to finance the purchase and rehab of the deal and then present it to a traditional lender for a conventional loan? Or, should I just approach the lender for an FHA 203K Loan. With Hard Money, I know I can purchase and rehab most of the property my self (seeing that I have experience in minor rehab) and drive the value up and go to the bank. On the other hand, using an FHA 203k Loan requires bids from multiple contractors and is overall just a very stringent process. My market is so hot, that when anything pops up such as multi-family it is gone within a week. I might be forced to work with a SFR. Is there some way to use an FHA 203k and use hard money and use the money from the 203k to pay off the hard money lender? Insight on how the true workings of this process is greatly appreciated.