I'm a first time homebuyer looking to buy a fixer upper that needs substantial upgrades but does qualify for a conventional mortgage. My main question right now is how to finance those renovations in a way that allows me to do a lot of the work myself. This will be our primary residence, though it would be a test run for potential future investment properties. We won't move into the house until the renovations are complete.

Here are the details:

- Home Purchase Price: $220,000
- Renovated comps sell for $375,000 - $425,000
- Renovation Budget: $60,000 - $80,000
- Available Cash: $50,000
- Household Gross Income: $145,000 (but daycare eats up $20,000/year)
- Existing Debt: $0
- Credit Score: 749

The renovation will include the following upgrades:
- (Contractor) New Electrical (first floor is knob and tube)
- (Contractor) New plumbing (functional but has galvanized supply lines and bathroom needs gutted anyway)
- (Contractor) New Gas Furnace or Ducted Heat Pump to replace oil furnace.
- (DIY) Insulation/air sealing upgrades in attic and crawlspace
- (DIY) Kitchen, Bathroom, and Laundry Remodel
- (DIY) Refinish existing wood floors on main floor (and carpet upstairs if budget allows)
- (DIY) Interior painting (and misc. drywall and plaster repair from other upgrades)

The good:
- Foundation is in great shape, house is level and square (as much as possible for 110 year old house)
- Interior is bone dry with no rot or mold
- Roof had a full re-sheath/replacement last year
- Exterior siding is meh but in good condition with decent paint
- Windows are original wood w/storms but well maintained with historic value.
- Eventually we'll add a second bathroom on the second floor directly above the existing bathroom.
- Some charming original details (porch, molding, doors, wood floors, fireplace)
- I'm an architect by trade and both my father and father-in-law have construction experience and are willing to help with the remodel.

What options do I have to finance this and do a significant amount of work myself? I can take a 2 month break from work to do the DIY renovations and manage electric/plumbing/HVAC subs. I don't have quite enough cash on hand to complete all the renovations, especially if that cash were to get eaten up by down payment and closing costs. The available cash does not include a modest emergency fund or retirement accounts.

From some research, it appears I may have these options:

- Hard Money Lender (or Private Money Lender)
- Construction to permanent loan (not sure on DIY feasibility)
- Conventional loan for house, then separate renovation loan or hard money loan just for renovations
- FHA/government backed renovation loan (possibly just include "contractor" work in this with minimum down payment and then DIY the rest with remaining cash)

Spokane, Washington

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