HELoan 125% LTV...Worth It?

[Michael Webster]

Hey everyone. I'm looking at financing to get going on my first flip done exclusively by me. I've been a part of flips before, but mostly on the sideline. I've got great credit, but 1099 income (real estate agent), and all of my cash is currently tied up. I have a bunch of equity in my home and found a place that will do a HE Loan of 125% of the LTV (https://www.sdfcu.org/home-equity-loans), but the rates and terms are less favorable than most traditional HELOC's. I guess my questions are

1) is it foolish to take out $100,000 at a 7% rate over 10 years to do a flip?

2) Will the line make my DTI ratio too high so that I can't BRRR a property? (I make a decent wage but I do have a car payment and my house payment - though both are more than paid for by HouseHacking with AirBnB...but the bank doesn't consider that).

3) Would it be better to go with a 90% HELOC, with no annual fee and no closing costs and just do a significantly cheaper flip?

Any thoughts or tips would be great. I have started contacting family/friends to see if they are interested in getting into REI, but I don't want to rely on that.