Looking for advice on financing multifamily duplex

[Zach Norton]

Hello BP community, I am relatively new to REI and am looking for advice on financing a potential multifamily unit . First, some quick background on my current rental portfolio. My first two investment properties are single family homes that I purchased earlier this year utilizing LOC's and the BRRRR method. I purchased the first home with a $50,000 LOC and put approx. $12,000 of my own money into the renovations. I was initially going to flip this property but as more expenses piled up I switched to the BRRRR. I have great tenants in the house and have done a cash out refi. The second property was purchased with a $40,000 LOC and is also currently rented. I cannot cash out refi this property until early December.

My next prospective property is a multifamily duplex that needs quite a bit of rehab. The home has two units, each the exact same. both are 2 bed, 1.5 bath. one unit is currently rented for $575 and rent has not gone up in over 7 years. The tenant has been there for 12 years and pays month to month. the second unit was just rented within the last month for $650. total rental income per month is $1,225. this number will increase after renovation and based off of market trends. I project rent could be $700 each per month after rehab.

Each duplex needs foundation work, new carpeting, paint, updated bathrooms and kitchens. The listing price is $69,000 and has been on the market for over 1 year without much in the way of offers. We were able to speak to the owner at the showing who states he is motivated to sell and just wants out. I believe we could purchase for high $50's with cash. Renovation costs will be in the ballpark of $25,000- $30,000. I believe we can be in for less than $90,000. my realtor believes comps to be in the range of $110,000-$120,000. My intentions are to buy and hold the property to rent.

My questions is how to finance it or if it even makes sense to do the deal. Should I pay cash with the LOC funds I have available in hopes of getting a better sale price? I could then wait until December to renovate with the funds from the second LOC once they become available and continue using the BRRRR method, all while making $1,225 from the current tenants. My other option is to purchase with a conventional loan and keep the LOC for the next property or properties that become available. I have never purchased an investment property using a conventional loan. I believe my lender requires 20% down.

Any advice is appreciated. If I can answer any additional questions, I will do my best. Thanks in advance.