Combining private money and convention loan

[Scott Chester]

My wife and I are looking to purchase our first investment property in Charlotte, NC. We are doing the BRRRR strategy and do not have available cash for the down payment and rehab costs. I have read a lot on using private money lenders to fund the initial purchase and rehab but have not seen anything on combining private money with a conventional loan.

We are considering using a conventional loan (requiring a 20% down payment) to fund the deal and using a hard money lender to finance the 20% down payment and rehab costs. The house we are most interested in is listed at $110K and will take around $20K in rehab costs. There are not many renovated comps in the area, but the ARV will be around $150K - $170K.

Has anyone combined these methods with success or would it be best just using a hard money lender for the entire amount before refinancing? Does anyone have any spreadsheet or calculations on what the monthly payments would look like combining the two financing methods? We would love any advice/thoughts on the subject!

Thanks in advance for any help!