Hard money for the purchase may be necessary depending on how distressed the property is but once its stabilized you could refinance into a lower interest rate, longer term commercial loan. In either event, expect lenders to require 20%-30% of your skin in the game.
With 30K you could find a hard money lender that would do 75%-80% LTV of the purchase as well as lend you some renovation costs which would typically be dispersed in draws. Keep in mind though most first time investors take a 5% LTV hit from lenders so 75% may be more realistic. But remember you'll need to save funds for not only reserves but closing costs which can tend to be a little higher in the form of origination charges when it comes to HML. Hope this helps a little.
Good luck on your first deal! Looking forward to you posting the progress!
given that this is an auction Hard/private money or partnerships may be your only options. does the auction give you time to finance the property through conventional means or will you need to have the money at the close of the auction? Also keep in mind that buying at auction is very risky for your first deal, you don't really know what is going on in the property unless you are able to get in there and inspect it, or better yet have a home inspection done. Trying to get into your first deal with none of your own money will be more difficult considering hard money lenders will want you to have skin in the game especially considering you have no reputation or experience. Are you exploring other options besides auctions? 30K is enough for a down payment on a duplex or tripex in some parts of Cincinnati. The best bang for your buck would be to get an FHA 3.5% down payment loan on a 4-unit owner occupied building, but then you would have to intend to live there for a year.
Hey @Eric Ramsey
Would love to hear an update from you on how the bidding process ended and what you've discovered throughout the process so far. Looking forward to learning from your experience!
Also, what online auction platform are you using?