I have a contract on a house in Hollywood, FL for $348,000. It's currently a single family house with an unpermitted studio in the back that is rented for $700/mo. I checked with the city and it is zoned multifamily. After I close, I plan to get a tenant into the front unit for around $2200/mo but keep the tenant that is in the studio at the back of the house until I get permits from the city to renovate the back apartment.

At the same time, I will be working with an architect and the city to get permits to renovate the back part of the house into a separate unit. The permit process plus the renovations should take around 3-6 months and $100,000. When that is done, I plan to get a tenant into that unit for $2500/mo. Ideally, after I get the second tenant, I would like to refinance the house based on the after repair value of $600,000.

I will have enough cash at closing to purchase the property but not enough to do the rehab as well. What kind of loan would you recommend? Should I just get a conventional loan now and then a HELOC in 2nd position after the rehab is finished? Should I get a bridge or hard money loan until the rehab is finished and then refinance the whole thing?

Ideally, I would like to close under my LLC for asset protection purposes, but I know from BP that I can get the best rates using conventional financing for my first 4 mortgages. After that, I would look into portfolio loans or private lenders. I currently only have 2 mortgages (a jumbo on my home, and a small HELOC on another investment property). Should I just stick with conventional loans under my personal name until I cap out at the 4 mortgages?

I would appreciate any feedback from fellow BPers, and if there are any mortgage brokers in the Miami/Ft. Lauderdale area that can help me with my financing, PM me and let's talk!

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Need help structuring the finance on this BRRRR duplex

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