Need help with my first deal

[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 Did not add orignation fee is $845. Also, do these fees vary from lender to lender and can you save by shopping around on the closing costs?