Coming up with a downpayment
Hi everyone, rookie rental property investor here. I have been interested in rental properties for a long time and recently came across one that looks like a really promising investment. As I've begun to read through the advice offered on the website I'm realizing just how ill prepared I may be. The house (duplex) I'm looking at needs some work and I have little to no experience doing any fixing and minor experience with upping. The bigger issue in my mind is how I will manage financing it. The property is selling for 95k but the city has determined that the lead paint in the house needs to be dealt with (understandable). I'm not even sure what all that entails yet but I'm assuming it means I need to gut it and start fresh. In the area, similar properties are selling for $140k+ which is the value I'm aiming to bring it to so that even if i don't end up renting I can at least break even on selling it. After a walk through everything seems pretty solid (will still have it properly inspected of course). If I rented both units I could easily cover the mortgage, and since I'll be managing it part time and looking at it as a long term investment I can deal with a few years of low/no cash flow, but I'm concerned about the down payment.
Since the property is vacant right now I'd like to take the opportunity to update it enough that I won't have to be concerned about making improvements for a while (and wrap it all up into the mortgage). I'd be looking at new siding, new laminate flooring, new counter tops in the kitchen (nothing fancy but they need repair), possibly replacing the roof and putting in new windows. I'm assuming all of this is going to cost quite a bit on top of getting rid of the lead paint and I don't have an exact number (but any advice on these estimates would be great too) for how much it will all cost. Assuming I'm looking at 50-60k total in renovations how would I go about financing this? I was thinking about maybe doing a 203k renovation loan but they require a lot down and I'm not sure how I would come up with 20-30% for down payment on a 155k worth of investment. Anyway, maybe I'm trying to bite off more than I can chew right now but I was hoping that there might be more creative ways of approaching this potential. Any and all advice is welcome, thanks for your time!