HML Vs Conventional Loan

[Akshay Bhaskaran]

Hello,

I'm putting together a deal for which I need advise from the great minds here.

Deal details:
Purchase: $232,500
Estimated rehab: $15,000 (flooring, paint, and bathroom door)
ARV: $310,000

Since the rehab work is very small, I'm guessing it might be done within a months' time

So, my major confusion is:
should I go with a HML, pay high closing (origination) costs, and again pay closing cost to refi into a long-term/DSCR loan
(OR)
go with a conventional 30 yr loan, and after a year do a cash-out refinance. 

Here are some numbers to help you with your feedback: