First Buy and hold property

[Joe Mulcahy]

We are looking for advice for our first purchase.  

Details: Cost of 3 bedroom townhome. REO property. 1500 square feet usually rents for approximately $1,100. Rehab under $5,000. HOA $80 a month. Taxes 2,500 a year. Insurance $100 a month. 20% down. Question about financing. Closing costs are approximately $6,800.00. What route is better conventional mortgage at 4.99% or a home equity line of credit at 2.99%? Will we save alot of fees using our line of credit. I thought the going rate for closing was 4 to 5%? We are paying an extra 1% transfer tax since the bank does not pay that. What are the pros and cons of each way? Thanks for any advice or wisdom you may have! Sherry