Typically, the initial upfront for the rehab is either cash or a high interest loan (hard money or private). 

For example, I have a private lender that gives me 8-9% on the rate for rehab costs when I am usually getting about 10.25-11.25% on the rehab costs from hard money lenders, and the HML is not sending the full money upfront, but in draws (this is normal for most HML) which is a lot more cumbersome. 

The original intention was to do a light cosmetic rehab and rent it out.

With regard to renovations, I always suggest taking incremental steps to bigger renovations or partnering with someone who has already done a renovation at that level.I've been known to just go for the big rehabs for my personal investments here in Chicago , and during that process, it's always more stressful than it needs to be...As far as navigating the competition, I've found the best thing I can do is get EXTREMELY CLEAR  on what I am looking for; then I am confident pulling the trigger quicky. 

IMO, even at $1.25M, and assuming you can improve occupancy and raise the rents to the low end of the market range (after doing the rehab), I think there's a deal here.

I bought 6 unit property in Wildwood,NJ,in November 2024, doing rehab now, should be done by May 2025I am planning to subdivide 6 unit building to 6 separate condos and sell fall 2026, , if there are any experts in 1031 that can help me?!

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

In this case, you would draft an operating agreement that specifies each partner's role—your friend providing the cash and you handling the rehab and management—and that profits and ownership are split evenly.

We follow a similar model as @Bill B. and with similar results, except our properties are from the 60s, so we gut them and rehab from the studs up, basically resetting the clock. 

Same issue, website address doesn't work