Purchasing a home that needs to be completely renovated

[Tyler Burton]

Long story short we will be putting 10% down for the house.  We could put 20% down and still have cash reserves but we are looking to acquire our first rental property this year so we would like to save some of that cash for the rental property.  We estimate the renovation will cost between 65k-75k to completely renovate.  Purchase Price is 325k, and we estimate after completing the renovation it should appraise for around 450k.

My question is what would be the best way to tackle acquiring the funds to complete the renovation since we would basically be looking to BRRRR the property?

[Cameron Tope]

Hey Tyler, 

Have you tried family and friends for the rehab money and purchase with hard money? Then you can refinance once the rehabs done for a successful BRRRR. That seems to be the simplest way.

However, I would caution against a 70k rehab for your first property. The larger the rehab the larger the risk and when you start, the risk of making a mistake is much higher.