Best mortgage for Live in Flip

[Mark Ashton]

Would appreciate input on mortgage options for a live in flip. The situation is we are purchasing a live-in-flip using a conventional mortgage and will rent out our current home while we do the 2 year flip. The two mortgages I'm looking at are a 30 year fixed with 20% down and a 3 year ARM with 10% down (plus PMI). Both have identical payments, but the down payment on the ARM is $25K less. We only intend to live in it for 2 years and then would probably sell. Seems like the ARM is the way to go (less capital tied up), but appreciate others thoughts.