Financing for a BRRRR through a bank

[Joe Swanson]

I am looking to purchase an investment property for 40k. I have a contractor who checked out the site today, he gave me a rough estimate of needing 15-18k in rehab costs,to include new appliances and HVAC. It's listed as a 3-1 SF, but has 2 (non-listed) rooms upstairs and a poorly done second bathroom. ARV would be around 105k, Back to the issue.

I wanted to use traditional financing through a bank, I am new to this and don't know any hard or private money lenders. A bank seems straightforward and easy enough.  I was wondering if a bank would give me a loan to include the rehab costs, if I was pre-approved for a higher amount than the 58k estimated for purchase and rehab?

Joe S

[Patsy Waldron]

Ask around at different banks if they offer Fannie Mae Home Style loans. These are purchase + rehab loans that can be used for investment properties. It allows you to save on closing costs since you would only have one loan.