Slowly getting the deposit together for the first IP so have started thinking about how to find the reno $'s instead of waiting another year to save it. Ideally will be looking to cosmetically reno and add a bedroom/bathroom internally but may have to add one externally. If that's the case, will need to come up with ~$40k. I've read that construction loans are available for around 5% and can be paid off over 30 years and have interest only periods. Would this be my best/most cost effective option? Is it possible to pay it off with the equity gain? Had a quick look at overdrafts, personal loans and credit cards it probably too costly or not possible for a fairly large sum. Has anyone else used a construction loan for smaller reno's?