question first 1st purchase!

[Joyce Chi]

we are currently under contract for a property under market value and can use some rehab. purchase price at 350k, needs about 25-30k of rehab. we have 2 ways to finance it. either take out a conventional loan with 20% down and pay for rehab, out of pocket is 100k (70k down + 30 k rehab), but this is money locked into the deal we can't access for much longer. OR we can finance it with cash (in the form of heloc or hard money), rehab it, and cash out re-fi at 75% LTV after 6 months with estimated ARV close to 450k , that will allow us to recover about 90% of total cash invested, we are leaning towards the cash route, but want to run in by the more experienced to make sure we are not missing anything. And what would be the pros and cons of using HELOC vs hard money in this particular case? Any thoughts or inputs are so highly appreciated!