First investment property

[Reh N.]

Hi BP community!

I need some input on an investment property.

Is it better to factor in my construction costs into the Hard Money OR use the cash I’ve set aside towards construction? I’m a contractor so the construction will be at cost.

Pros: 1) down payment would be much less because I would not factor in construction costs Into the HML.

2) my interest only payments would be lower.

3) have money in reserve. in case things go south.

Cons: 1) payments would be higher.

2) very little reserve cash.

FYI: this would be my first deal.

Any input would

Be appreciated.