Financing plan for a vacation rental

[Phillip Vaughan]

Hello, looking for some input. 

We are planning to purchase a vacation rental within the next year which we will also use ourselves from time to time to get away. I would like to run through my financial plan to find the pros/cons. This particular location is almost a guarantee to cash flow well.

Plan: Cost of the house will be between 200 to 250K and for that price, in this particular area, it will have to be a fixer upper and/or foreclosure. Since I only have about 10K at the moment I am looking to find creative ways to finance about 10-15K of rehab and most of the purchase. I might be able to do that with private lending. So the plan is to acquire private lending to purchase the home and rehab, then turn around and do a cash out refi with a traditional bank to pay back most, if not all, of the higher interest private funding. 

That is about it. Please tell me what may be wrong with that plan and what to look out for.