First Flip Finance Question

[Aaron Canciani]

Hello everyone,

I am currently researching for my first flip in Dayton, OH. Fortunately I have a steady job with a decent income and little debt, meaning I can qualify fairly easily for a conventional mortgage. I would like to do this for my first flip but see two potential problems. First, as far as I understand I can't buy something too run down or a conventional lender will not approve. So let's assume for my first flip I go with a mostly cosmetic flip.

The other issue is I need money for rehab. Are there any recommendations for how to go about getting the money for a loan just for rehab costs (around 20k)? The reason I think this is a little different then normal is that there is no home as collateral for the loan as it is just covering rehab costs. Should I just skip the conventional mortgage entirely if I need money for rehab?