Newbie Investor Financing Question
I know questions like this are addressed all the time. I did my best to piece together various posts before asking, but I'm still not putting together the big picture like I should. Apologies in advance for beating dead horses.
I am looking to buy and hold my first investment property. I found a foreclosure that looks to be an opportunity for instant equity in addition to a solid cash flow. I need to better understand my financing options before getting too far into the process.
Details:
Purchase Price: likely $70,000 - $75,000 (currently in online auction)
Reno Costs: ~$35,000
ARV: $135,000
Right now I can put 20% of the purchase price down with no issues while still maintaining 6 months of PITI reserves. This would still leave me in a spot where I need to finance the reno costs. If I'm going by what many hard money lenders will finance, it seems to max out at 65% ARV. That would be $87,750.
My question has two parts.
1) If I take the lended $87,500 along with my $14,000 (min) I fall short of fully funding the reno. Am I missing anything? Do I have any other options to finance the reno?
2) Given that hard money financing is 12%+ interest only, do most long term lenders prefer 6 or 12 months of seasoning before I can refi? Is the expectation to have negative cash flow until it's seasoned? Can I do cash out at the same time as this refi?
I'm new to creative financing, so I appreciate any sage advice from those of you who have done this quite a few times.