My first potential flip!

[Marcus Yates]

Hi all,

New to real estate investing but I'm a huge fan of the BP podcasts! I'm considering my first flip in the Atlanta area and thought I'd try to get some advice. The house is a 4/1 1930's bungalow in the metro Atlanta area located in a popular/heavily hipster populated part of town (inside the perimeter off the proposed belt line, for those familiar with the area). The house is listed for $70K and likely needs that much in repairs (I'll have a better idea once my contractor looks at it this weekend). Our realtor tells us that ARV is around $225K but the property may sit until the spring (to get that price). Between a partner and myself, we have the funds to purchase the property cash, but we'd need financing to renovate. We're both self-employed, and I assume reno loans will be harder to come by. Never worked with an asset based lender before, but I'm wary of borrowing money on my first deal.

Question 1: Assuming a monthly carry cost of around $500, do the numbers make sense?

Question 2:  Does it make more sense to purchase the property cash, or try to finance it with 20 or 30% down and use the balance of cash for reno?

Question 3: What are your thoughts on asset based lending (given that I'm unsure how long the project will take to complete)?