Extensive fix and rent

[Tim Mensch]

I'm currently looking at a home in my neighborhood that would be a great flip opportunity.  I had a private money investor that was ready to go in 50/50 but unfortunately he had some health issues to take care of.  I have been searching for a portfolio lender to finance the flip but as most of the forum posts related to this topic have said, this is easier said then done. I did however find a bank that would finance the purchase price/repairs if I held on to the property to rent.  My question is: Do any of you use a fix and rent strategy on houses that need extensive repairs (50,000+)?  If so, how did you finance these deals without having to put up your a signifiant amount of cash in the long term?  I would imagine a cash out refinance would work but I am curious to see if others used this particular strategy or if this is even possible through financial institutions.  My example would be a 110,000 purchase, 55,000 in repairs with an arv of 230000.  The rent would bring around $2100 per month.