Short on funds what to do?

[Tanner Cole]

I'm just getting into real estate investing and I've been doing comparables. I've found a property that's on foreclosure which is going up for auction next month. My initial plan was to do a cash out refi on my first rental but the appraisal came in under 100k and I'm having a hard time finding a bank to do the loan. I've never used a hard money lender and I'm definitely nervous about that idea.

The property I've found has a starting bid of 14k and should appraise for 50 to 60k after renovations. It looks like it needs about 15k in renovations but with being a foreclosure it's hard to tell for certain.

My issue with hard money is I wanted to brrrr it but with it being under a 100k I won't be able to cash out refi.

[Cassi Justiz]

Check in with your local community banks. Those are the banks that know the area and would be most likely to lend there. 

Hard money is an option, but usually it's a VERY expensive option if you can find someone that is willing to lend in your area. Since it's rural, you'll likely have a hard time finding someone that isn't local to loan out there. 

I still think going the cash out refi route would be favorable. Ask the local investors who they are using and you'll eventually find a small bank that can make it work.