Buying home and need to partially fund remodel of it

[Marvin P.]

I've put in an offer for a home in Burbank (suburb of L.A.) that was the being sought after by many investors. It is one of the cheaper homes in Burbank and is somewhat of a blight to the neighborhood. I plan on remodeling and living at this house with my family for a while (10 years plus if not much more).

I am planning on putting 20% down and will have around $65-70k in to put in the remodel, however I need to demo a substandard bedroom (converted garage) and add a proper master bedroom/bath. I've worked at residential architecture firms as a project manager for over 15 years so I know the realities of remodeling a home. $70k will not go very far and I need another ± $40k to fund the addition and remodeling.

There is a house caddy corner from this one that will be a comparable to mine after the remodel and it's listed for $669k. I figure that if I invest $100k on top of the $475k sale price I should have a house that I love plus has a lot of equity built into it.

I want to get a home equity line of credit or loan but most lenders have a 80 LTV ratio. This will net me a loan of exactly zero. I know about an FHA 203k loans but it seems like ALOT of work. Is this my only option at this point?

I know that many rehabbers were interested in this property and it drives me crazy that I am so close yet so far to have a great house AND a great investment. Is there anything out there that can help me come up with the differential I need?