Funding my first investment property in Charlotte

[Timothy O'Halloran]

Hey BP,

I am new to real estate and am in need of some advice from those who have been around the black. I have been searching for my first investment property, I have a few options picked out and am getting ready to start making offers. As of right now I am planning on using a conventional loan and putting 20% down. That 20% is about all the cash I have saved, I do not want to dip into my 401(k) because of all the taxes and fees that would be deducted. I want to use the BRRRR method but am unsure what loan options would be the best for the renovation portion of the project. I have talked to a few hard money lenders all of which require 20% down. I think I could potentially get a home equity loan, but from what I understand the loan isn't distributed until after the renovations are complete, which I think would make it difficult to work with a contractor. Do you think hard money is the way to go? What are some other ways I could fund the renovations for this project? I have good credit and a stable income, it doesn't seem like hard money lenders take this into account, but perhaps another loan option does?

Let me know what you think, trying not to get into too much trouble on my first deal! Your input is much appreciated.