I wanted to ask about the process of buying a house and renovating it. I've found a single family property in Michigan, not far from where I work that looks like it could be a good investment. I base this on the calculations I've done with BP's calculators and some honest rehab estimations.
I'm thinking it would be best to buy the property fully cash and then use an investor friendly lender to put a mortgage on it with about 30k to rehab the property. Based on the neighborhood and comps I think the property would be at/around 100k in value after an additional 30k in reno. And rent's in the area for similar square footage appear to be over %1 of property value.
However, I can't help but wonder if it wouldn't be better to go through financing first and use a loan to buy the property, and then use my cash to rehab it. I would think that my original way would be smarter because in the event of an "oh sh#t" discovery in the property during inspections, I could tack it onto the rehab loan (if the cost of the fix is worth it still of course.)
I was also wondering which method would be better for someone like me who is very capable of doing a lot of work myself. Ex, I knocked down a wall in my kitchen, ripped up tile and replaced it with hardwood, sanded/stained, assembled/installed cabinets/appliances, did all electrical, etc (everything was approved by the city of course.) I just mention this because I want to show that when I say I can do a bunch myself, I mean more than just back splash or install a switch.
I would really appreciate anyone's feedback on this, or your own experience. This will be my first investment property :)