Needs strategy advise of full remodel of single family resident

[Maddison Martin]

Hello

My husband and I are thinking about buying a family friends house that she inherited. We will be getting it hopefully getting it for a steal (around 950,000 ) in class A neighborhood but its worth around 1.2 million.

It needs extensive work before I consider it livable.

This is my first time buying a property and need some advise.

This property has potential to be valued at 1.4-1.6 mil after remodeling and even more as there is potential to add 2 ADUs to the back.

We estimated around 175,000 of work needs to be done ( full remodel kitchen and guest bathroom) new floors, windows, repiping and rewiring etc. 

We are putting a huge deposit down on the house ( around 50%.)

My question is what is the best way to finance the 175,000 for the rehab. Do people typically just take out a bigger loan to finance it or are these special loans for rehabs with lower interest rates? 

Or not put down such a large deposit and use that money for the rehab? We will be paying rent at our current place while the rehab is being done so we would be responsible for rent, mortgage and the rehab.

I live in southern California is this help at all.

Any advise would be great! thank you