This is more a question of the mechanics and timing of renovations mixed with how to finance.

I may have the opportunity to purchase a 6 unit apartment building.  The property is what I would call a C property in a B area.

I think given the amount of work needed, I could get into the property for about $125k. I could put $40-50k in renovations and I estimate the ARV to be close to $250k.

We have some local lenders that work really well with real estate investors. If the property was vacant, it would be simple to get an interest only construction loan and only pay a down payment on the purchase price (20% of $125k --> 25k). And then once it was renovated and rented, I could refinance the property. Essentially the BRRRR strategy.

Buuuut, the property isn't vacant.  I don't want an interest only construction loan lingering for a year or more.  So then I'm obligated to move towards more traditional financing and rehabbing the building over time as tenants move out.

Here's where I get hung up:

Option A, Construction loan: I get into the property for 25k and use the bank's money to do all the renovations and when I come up with another 25k from my primary job I buy another property

Option B, Traditional financing: I still get into the property for 25k, but instead of using the bank's money, I'm using my own funds to renovate.  Money I could've used to purchase another property.  

Thanks!