First deal funding

[Jack Kawecki]

Hello BiggerPockets community,

I'm a beginner investor looking to close my first deal and would love some advice from the experts. I'm under contract for my first property. It's located in northwest Indiana. It's a 3-bed, 1-bathroom single-family home, approximately 1,100 square feet. Built in 1956. All brick on 0.28 acers. I feel it has great potential as a flip, but my priority is to establish this as my first cashflow property. It needs some minor renovations, mostly cosmetic, like painting, flooring, and minor changes, but the real advantage is the unfinished basement. It could be renovated to add a significant amount of square footage, potentially turning it into a 4 or 5 bedroom house with additional living space, or even an ADU (additional dwelling unit) with the potential to be rented out. Having said that, AVR wityhout the finished basement are $240k-$250k and $280k-$295k with the basement renovation. The catch? As a first-time investor, I want to do this with little no down payment to preserve capital for renovations. I've heard of options like seller financing, lease options, covenants, DSCR loans, or working with private lenders, but I'm not sure what's realistic for a property like this. What strategies can be used to achieve a low or zero down payment on this one or similar startup deals? Any tips for negotiating creative terms? How would you approach financing renovation? Potential pitfalls for a novice? ARV estimates, maintenance costs, etc.? I'd appreciate any stories, resources, or advice—links to BP articles or podcasts would also be appreciated. Let's connect if you're in Northwest Indiana!

Thanks!

Jack Kawecki

[Erik Estrada]

Hi Jack, 

It will be very challenging to convince a private lender to lend you 100% of the purchase and rehab being a first time investor. You may benefit from having a JV partner help you fund the downpayment needed to close. Typically as a first time investor you are required to put at least 20-25% down.