Guidance on financing options for first property

[Joseph Wojciechowski]

As someone dreaming of passive income, I'm looking for guidance on creative financing options for my first property. It's a 3/1 duplex listed at $200k that needs a 3 month, $20k rehab. ARV is $280-$290k. It will rent for $2700/mo after reno. I have $60k of capital available but would like to limit my exposure and pull out as much of my investment as I can after the reno and refi. I can qualify for a conventional loan at 20% down but I wouldn't have quite enough left over for the $20k reno costs. Is there a way I can wrap renovation costs into a conventional loan? Or should I go hard money with a smaller down payment and refi to conventional after seasoning period? Any recommendations would be greatly appreciated!

[Andrew Freed]

@Joseph Wojciechowski - You can also do a FHA 203K loan which requires a small downpayment of around 3.5% and they cover the renovation costs. I believe they have streamlined FHA 203K loans when the rehab is less than $35K which has less red tape associated with it. Definitely a question for a lender however this seems like a good option given your capital situation.