First Property - Tax Sale?

[Evan Manship]

Hi BP,

I am an entry-level investor looking to get into my first property. I want to purchase a multi-family property - 2-4 units with preference toward a 4-unit property. I want to utilize one of two options:

1. Purchase a multi-family property with FHA 203k financing and lease out three of the four units while occupying the fourth.

2. Purchase a multi-family property via tax sale. I can afford to wait up to another year or so before I HAVE to be out of my parents house. Obviously the shorter the time the better, but if I can get a good property at tax sale I would love to do it.

My only question is, if I purchase a property at tax sale and it needs renovations, what are my options as a newbie to finance renovations? Am I pretty much on my own at that point or can I utilize home renovation loans?

Thanks in advance.