203k vs Hard Money vs Construction Loan

[Cory Cox]

I got under contract on a duplex here in Conway, Arkansas this morning at a real good price of 85k from the MLS (if that matters). It is a 2/1 on each side and is close to a big college here in town. I have my inspector coming in on Thurs to give me exacts on repairs, but I'm thinking it will need somewhere around 20k of repairs to it to bring it up to a good standard. ARV I'm thinking will be around 140 - 150k or maybe more considering small multi's are hard to find and outrageous right now it seems in Conway.

I'm looking for a low down payment considering that's why I don't just pay for the repairs myself and could live in the rental once it get done with repairs or obviously just rent both sides out and take the cash flow (ultimate plan).

Is the 203k going to sadly be my best option considering I don't have a ton to start with upfront?  I was really hoping a great deal like this would be able to help me out on the back end of it of even if I strike out then they will get the property.

Talked to one lender this morning and he said he would prefer 20% but have seen where 15% down is done.  I could maybe stretch that with friends/family but I would like to get them their money back as soon as possible of course.  Thing is, If I was able to come up with the 20% (17k) then I could just use that to make the repairs!

I'm so torn on what to do.  My main objective is for good cash flow and eventually in a few years be able to live off my passive income, but something like this, should I just find a way to make the repairs, take the profit and then I'll have money to play with on my next after paying my family/friends back? I plan on making a decision here in the next couple days as I have contacted a few banks/hard money lenders to see what exactly my options are.

Thanks for the help!!