Buy a cheap fixer w cash or use the cash for a DP?

[Jacqueline Coombs]

Hi, all. I have an opportunity to buy a 1920s 2/1 SF rental house in the 20k range. The roof is shot with evidence of plaster damage on ceilings, needs all flooring redone, all new paint and new bathroom fixtures. It may need some rewiring as there is visible knob and tube. I want to buy and keep as a rental but I am afraid of running out of $ trying to rehab it ( which I have never done before). It is in an up and coming neighborhood ( Baxter in GR). I would pretty much exhaust all my cash with a cash purchase but would have a house worth at least 55-65k. Or, do I use less of my cash to buy a 70k rental that needs less work? I would also end up with way less in instant equity because of how hot this market is. My goal is to use the BRRR strategy to be able to scale up and buy more property but I am afraid of getting in over my head ( and finances) on a rehab! Any feedback on this? Thank you! Jackie Botham, GR, MI