Construction Loan (For Buy and Hold)

[Jake Johnston]

Hey everyone, I'm 21 years old and recently bought a single family house I'm renting to an elderly couple. I will be looking for my second rental property sometime early next year and have been considering buying a cheap fixer upper house around the 20,000 dollar range. I will then take out a construction loan to fix the house and then instead of selling, I will hold it and rent it. My thinking is that I can put very little money down on this deal while at the same time having a cheaper mortgage compared to if I just go out and buy a $60,000 house. I live Missouri so the houses here I priced pretty well. Just wanting to get everyone's thoughts on this? Has anyone done this? What did it cost? And did everything go? Thanks!