Options for financing a BRRRR

[Greg Downey]

Quick background on myself:

$35k in the bank (I am willing to temporarily part with $20k). Own our personal residence 30 year fixed VA (7 months old) and one $61K turn key investment in Memphis that I am expecting to cashflow nicely @ $275/mo with a 20% down payment.

I am looking to do some local (Springfield, MO) BRRRR deals. After talking with the largest wholesaler in the area, it seems as though a $20 property that needs $30k of improvements and an ARV of $75k is pretty typical and readily available.

So, knowing the jist of my finances, how would you go about financing a deal like this?  

1. Purchase the $20k property outright and get lending on the $30k rehab....bank vs hard money vs business credit card

2. Ask friends to act as hard money lenders for all $50K (they take 1st lein)...with my cash still in the bank as a backup

3. crawl into a ball and not act due to crippling overanalysis/fear....not an option

I am more comfortable with option 1.  

What do you think?