BRRRR in Northern NJ

[Rennuel Mart Razal]

Hi everyone,

I am completely new to REI. I live in Norther NJ and I was able to find a single family home with an extended family suite (4bd/2ba) to house hack. My plan isto live in the suite (1bd/1ba) and rent out the main area (3bd/1ba). But the home also needs renovation of both kitchens and bathrooms (~$30-40k).

Currently, the sellers want a higher bid and I got them negotiated down. I plan on using an FHA loan to obtain the property but I don't have enough money for the rehab.

So how does the refinance work if I am able to find a private lender for the rehab? What is the time frame for refinancing? And would I be able to roll the rehab costs into the refinancing so I don't end up paying both mortgage and private lender on a monthly basis?

Or what are other suggestions for the financing/exit strategy with this property? Thanks for your time and looking!