Buying and reno

[Abigail Huse]

Ok! So this is going to be my first fix and rental.

i found a home/lot that i am wanting to turn into a duplex.

the house is on the market for 99k. Realtor said dont offer more than 30k (house a total gut)

I have 100k cash. 

what would you do financially as far as acquiring the property and fixing it up... my cash for purchase and Reno? (If even possible with how bad it is) 

Or my cash and a loan for reno?

I just want to make the right move here! 

[Drago Stanimirovic]

Great find, Abigail, and congrats on stepping into your first fix and rental project.

If the house is truly a total gut and you're being advised to offer $30K, the smart move is to preserve as much of your $100K cash as possible. You could use $30K–$40K for the purchase and then finance the renovation with a fix-and-hold loan. That way, you keep cash reserves for surprises, and once the rehab is done and the property is rented, you can refinance into a DSCR loan to hold it long-term.