How to fund my rehab project

[Gabby McNabb]

So im currently in the market to purchase my first rental property. Initially I planned to purchase a multifamily home through FHA 203K to rehab home and build equity in home while providing low downpayment of 3.5%

Now im considering purchasing super cheap fixer up, less than 30k, and rehab the home overtime.

**Full disclosure I have 40k saved up. Not a whole bunch but I work, save what I can, and never ask for a hand out.

If I go this route and just buy the cheap property for 30k how can find funding for the remodeling? Any and all suggestions are welcome. Or should I still with FHA and keep my money in my pocket?

[Lien Vuong]

Largest advantage of RE investing is leverage and OPM (Other People's Money). I would leverage the FHA 203k if you're able to and leverage the loan that way. There's a lot of provisions in the loan process that'll help to protect you and them on the purchase.

If you bought your house cash, you're holding all the risk and also liquidating all of your funds. Not a smart first move as there's a lot of room for error.