Reno started, how do I pay for it?

[Sean Kelly]

I’ll start by saying I’m new to investing. I purchased my first deal after reading rich dad poor dad and listening to the BP podcast constantly for the last year or so.

I purchased a home in October in southeastern Michigan and am now about 6 weeks into a rehab I'm completing myself as I'm a licensed builder. My intentions are to rent the property. Purchase price $116,500 (5% down conventional), reno budget of $30,000 putting me all in at $146,500. Expected ARV is $155k-160k. I used the cash I had available for a down payment and closing costs but wanted to stay out of my own pocket as much as possible.

As I'm learning more about the refinance process I'm understanding I'll need to leave at least 20% in and will not be able to use the refinance to pay off the credit cards (0% APR for 12 and 14 months) I have been using to finance construction. Additionally, I plan to take the renovation a little further to minimize future maintenance issues and will need additional funds (10k) beyond the amount I would have been comfortable spending on the 2 credit cards to finish up the project.

I’m hoping someone will have a recommendation (construction loan possible?) on how to finance the construction retroactively so I can get my full budget and pay down the credit cards in the next 10 months. Looking forward to hearing your thoughts!