Finance Investment Property Purchase + Rehab ?

[Matt Kohnen]

There is a SFR in my neighborhood (I know the owner), and the inside has been gutted & has remained unfinished for at least a couple years because they ran out of money. We have a good amount of equity in our personal residence--enough, say, for a down payment &/or rehab costs.

But I have never bought an investment property before, and it seems like lenders won't touch a deal that needs rehab (unless it's owner-occupied).  It's seems like a catch-22 / chicken-or-egg-first kinda conundrum.  How can I get financing for this purchase ?  By the way, we want to hold onto it for the long-term & rent it out.

Also, my good friend is a general contractor.