Diversifying your portfolio can also be beneficial, as it helps mitigate risks associated with market fluctuations.

Quote from @Wale Lawal: @Paige GardnerYes, this strategy is possible, but it comes with risks that you need to manage carefully.

That is a unique risk.

@Adedotun Kembi Most lenders will only lend a total of 65-75% on a rental and at much higher interest rates due to the higher risk.

(We’re free to you as the buyer).

Your simplest option is a hard money loan or private loan against your free and clear property to provide the cash for the rehab.

If you’re open to outside capital, pitching it as a long-term cash-flowing asset with shared risk could attract the right partners.I also run a private lending business and might be able to help with financing on this.

If so, you should also look into the insurance requirements during construction (both builder risk as well as the GC's policy, but particularly the GC policy).

I hear this even in popular podcasts like Thanks for Visiting where they recently have been interviewing very seasoned, successful MTR hosts and keep asking 'but what about the risk of squatters??'

Going OOS involves a LOT more trust & risk with whatever team you put together.