Should I Use a Bank or Hard Money on 1st Deal?

[Allen Moore]

Hey BP community! I plan to use private money from family and a HELOC following the appraisal/refinance on my 1st mortgage as the down payment to purchase a 2-4 unit investment property between January and March 2021. This property will require some cosmetic work only. (landscaping, flooring, paint, windows, doors, kitchen/bath remodel). I have a LLC and may be partnering with a group 3 other new investors like myself outside of my wife and I. Our home is in my name so we were thinking of getting a 2-4 unit FHA loan in her name, hacking a unit for a year, and refinancing to a conventional loan. On the opposite, we could use a Hard Money Lender to fund the purchase and rehab, to follow through with BRRRR. Our market in Cincinnati is rising but isn't very expensive. The typical home value is 167K. Dayton is an hour up north where the average home value is a lot lower around 68K, but that also means lower rents.

My question is . .  In our situation, what would be the best source of funding with the least amount of our own money in the deal? Through a bank or Hard Money Lender? Would it be better to look in Dayton since the overall market is cheaper?