Duplex purchase with new third unit--how to finance?

[Page Huyette]

I'm looking at a duplex zoned for 3 units with a nice comp next door. The duplex is a SFR turned into a 2-unit in a great neighborhood. The 3rd unit would be freestanding off the alley where the oversized garage currently sits.

I'd like to purchase the property, rehab the front units to increase rents and value, and go right into construction of the third unit. I can come up with the down and some of the $ for the rehab. Would this be a good candidate for hard money financing? I know hm is usually used for fix and flip, but this would seem to be a property that hm might work for. I would talk to my local lender first to make sure my financing exit strategy would be sound with them.

Option #2 would be to convert the front unit into a sfr and resell, or convert and add the smaller unit and resell. Any thoughts?