Need Funding Rehab Advice

[Krystal Goode]

Hi there, I'm a newbie seeking to score my first deal in 2018. I live in PG County Maryland. Right now, my goal is to save $12k more for a down payment on a SFH that I will not live in. I plan to buy in a blue-collar neighborhood with a conventional loan expecting to put at least 20% down. My question is if I only save up for the down payment - how can I fund the rehab costs? Is it common for investors to borrow that money from the bank too? What is some advice for how to cover the rehab costs?

[Jason D.]

Most conventional banks will not fund rehab. You may want to think about a BRRRR on it. Buy with private or hard money (they will fund rehab), then refinance and pay those loans off or sell if you are flipping. The only kicker is that you want to make sure the deal is good enough that you are at less than 80% ARV when the project is finished.