Convention loan or LoC to buy rental property

[Jordan Ashabranner]

Hey all,

Any feedback is appreciated. 

In the process of buying my first rental with a conv. loan. Purchase price is 62k and dp is 15%. I'm fairly certain I can get approved for a 50k LoC at my bank. I'm trying to understand if that's the better option. The down payment for myself is similar for both scenarios, but with the LoC I dont have the loan closing costs. I'm assuming for many of you the main factor for this decision would be what the ARV is. If its not high enough for a refi to make sense, would you just keep the conventional loan financing and forego the refi? Conversely, if it is high enough to pay off the LoC and give me some cash back, isn't that the correct play?

For example, even if it only appraised after rehab at 80k, I can get a 64k refi on it and cash out well over 10k. That won't be all the money I have in it, but most of it. If I'm confident the ARV is 80k or higher, do I go LoC buy then refi route?

Thanks!