Newbie with Financing Questions

[Brooklyn Cartwright]

I just stumbled upon a property that looks like a potential amazing investment but needs A LOT of work. I can do a HELOC on my primary residence and have access to about 60k in captial and the property is 215k. My question is, whats the best way to finance it- I can use the HELOC for down payment for a conventional loan, but then how would I have the funds for the rehab? Is that where hard money or private loans would come in? Just trying to wrap my head around the best way to structure it. My plan was to rehab the property and then rent it and cash out refinance to begin BRRRR cycles. Any help or knowledge here would be greatly appreciated!

[Michael Dumler]

@Brooklyn Cartwright, before discussing finance options, the real question is: How do you know this is a fantastic investment? What do the numbers look like? ARV? Rehab costs? Rental rates? If a lot of work is needed, itemized costs will add up fast, and depending on how well-versed/skilled your GC is, your deal could be killed if something is missed.

Regarding finance, to piggyback off of others, a fix-and-flip or private loan to finance the majority of acquisition and rehab expenses is your best bet. As I tell everyone new to short-term debt, please ensure you have your ducks in a row before borrowing. I've heard too many stories of borrowers getting hammered with extension fees because their projects took longer than expected. 

I'm happy to connect if you have any additional questions regarding the acquisition. Could you let me know if you've started a discussion with the seller? Chances are, if a killer deal is listed on the market, it's likely already under contract. Even with relatively high rates, deals are still moving quickly here.