HELOC or Hard Money Loan

[Jessa Batylin]

Hi BP’s- new to investing but not a complete newbie. A little background:

Both my husband and I have been in construction for 20+ years, both licensed GC’s, hubby is a licensed plumber. Both self employed.

Not sure what’s the best way to start investing. Our home we live in is paid in full- in today’s markets it would go for $400+ so there’s equity to use.

Being self employed we have taxes to show 2-years of income. A lender we were talking to said we could use up to $4000 per month borrowing power. So we can go traditional lending.

We want to flip and BRRR
2-part question: 

For the rentals: BRRR- Is it better to take out a loan and finance the 1st rental and use the BRRR method? Or use the equity in our home (also potentially use equity for flip)

For the flip: Is it better to use the equity in our home or a hard money loan to keep cash flow using someone else’s money?

Thank you!!