Buying a Duplex that Requires Renovation

[Evina Nonato]

I am taking my first step into buying my first property and I am planning on buying a duplex - the cost is $135,000 and I currently have $30,000 saved as a down payment. I am pre-approved for a conventional loan. My question is related to renovation. If this property requires approximately $20,000 in renovation, is it better to get a conventional loan and put $30,000 down and then take out a renovation loan? Or, is it better to try to get an FHA loan and pay 3% down and then use my own money for renovation? What are the monetary options for being able to renovate a property?

Thank you!

[Ken Nyczaj]

Since it's your first property, might be better to hang onto the cash in case the unexpected happens- vacancy, hvac goes out, or other capital expenditures. Just be sure you still cash flow only putting down 3%.