My Third Deal! New Investor Complete Financing Question

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     Here's the breakdown and background. I am not seeking out private money here, I am just asking what could be the best way of approaching financing for this deal. Private vs. Conventional?

I did my due diligence on this deal for about 3 months of prep. Good market drivers and tenant base in the area at the right price. (northwest Ohio). I ended up purchasing a close to complete rehab job at tax auction for $20k cash. I moved the parcel into an LLC. The parcel consists of 2 building structures, a single family home with which I evicted the tenants out of after they were living there for a year rent free (and without jobs) before I bought the parcel. The other structure is a triplex with some considerable water damage. Current evaluation of the property is $91k with an ARV of $170k. The total rehab is $60k for the triplex and $15k for the single family home. So I would be in the deal for $95k at the end. I am currently trying to separate the parcel to split the properties. The triplex work has already started with the structural engineer assessment complete and working on a new roof and mortar fixes between the bricks to have the triplex ready for winter. The single family is structurally sound.

     I will have about $40k of my own money in the deal but this is the first deal to where I can not finance the entire deal on my own. My immeadiate steps are to winterize the triplex, split the parcel and then focus on rehabbing the single family first to get some tenants in to help with cash flow to cover holding costs and financing expenses to come. I have never sought out private money before and that is the weakest area in the real estate investing arena. Would this be a good time to seek that out private money for 12-15% with as much skin in the game as I have, or would it better to seek out conventional financing after the single family is complete? 

     I also have a W-2 job paying $70k a year to qualify and give a personal guarantee either way. Any input is very much appreciated! 

Hi @Charlie Palmer ! I think the best time to seek out private money is when you have a specific deal on the table, as you do now. I'd begin by having conversations with as many prospects as you can. Play around with the various financing terms (duration, interest rate, equity split, etc.) and see what can be negotiated. The true purpose, even more than the money, is to get some exposure and experience. Even if you end up not striking a deal, it will make the next time around much easier and far less scary.

That said, I do believe you should make conventional financing your Plan A. Assuming you have the credit and income required, a bank loan on the SFH should be viable, once you have it re-parceled and filled.