Convert Hard Money Lending into conventional financing

[Ryan S.]

Hi all - thanks in advance for your help.

I'm interested in purchasing a 2 unit rental in PA, and have an investor (friend) who is willing to lend me cash to purchase it. After a self-funded renovation, I'd like to take out financing to ideally pay back the investor + my renovation outlay, leaving me with little money down.

I'll use a 75K house with 25K renovation budget for the sake of clarity in numbers. Assuming the house can appraise for $130K after renovation (approx 75% of a 100K LTV), what are my options and the best way to make this work?

Credit and income to cover a new mortgage/HELOC are not an issue.