Construction mortgage for house hack

[Niti Jamdar]

Hi all, I have a financing question for a good investment opportunity - a house hack. I'll start with a quick background - my wife and I are working professionals, and have been investing in real estate as a side business for over a year with 3 rental properties that are profitable. We are planning on buying and remodeling a duplex - we will live in one unit and rent out the other unit. The duplex house is a 5 bed 3 bath requiring a complete gut job. The purchase price of the house will be around 350k, and the remodeling will cost us around 150k. We plan to put a 5% down payment for the house, and are hoping to get financing for the 150k in remodeling costs. We think we can rent the one unit for around $1,500. My question is this - what kind of financing options do we have for the remodeling cost of 150k? Can we get some sort of construction loan that can be combined on top of our home mortgage? Is such a loan hard to obtain considering we'd only be putting 5% down? Any advice would be greatly appreciated. Thanks in advance! Niti