private Money or Partnering for BRRRR

[Nathaniel Larrea]

Hello BPers,

I'm working on purchasing my 5th deal now and having trouble deciding on how to finance.

I've been approved for a PML to purchase a property for around $100k but only at 65% ARV which doesn't leave me enough to rehab ($162,500 - $100,000). At which point I would have to come out of pocket ($18k additional for $80k total renovation) to succeed in renovating the property to its full appraisal potential. The terms also stipulate interest payments of 11% right away and 3 points which can be added to loan. At a ARV of $250,000 I would have to be making payments of $1,489 every month which seems like a lot of cash flow to tie up even before the property is refinanced.

I also have the option to partner (silent) in with someone who is willing to invest up to $100k for 50% of the deal which will basically just buy me the property, but i'd still have to come out of pocket for the reno.

Not sure if either sound appealing and wondering if anyone has a recommendation which might be the better choice if any at all.

Many thanks