should i finance the rehab + wholesale costs OR just the property

[Rubin Thomas]

hi,

relatively new to the game. i have a property with good potential in an area i think will appreciate well. in my current situation, i am not strapped for cash and can save 7-8k month for real estate purposes alone with my current job. this will be by first SFR and goal is to have at least 12% COCROI and have a minimum of $150+ using the 50% rule. im more or less in it for the long term game and want to retire with a rental portfolio that can supplement my income within the next 10 years.

here are the two scenarios for the following property:

property: $65k

rehab costs: $10k

closing costs: $3,200

wholesaler costs: $2,500

i plan to put 20% down on a 30 year fixed loan at around 4.8%

Scenario 1:

I cover out of pocket for rehab and wholesaler costs as well as downpayment + closing costs

Property: $65k

Rehab: $10k

Wholesaler costs: $2,500k 

Downpayment: $13,000k

Closing costs: $3,200

Total cash needed: $28, 710

COCROI: 12%

Monthly cash flow: $288

50% rule: $313

Scenario 2:

I finance the rehab and wholesaler costs through my bank. Only thing I pay out of pocket is downpayment + closing costs.

Property (putting rehab and wholesaler costs into property): $77,500

Rehab: $10k

Wholesaler costs: $2,500k

Downpayment: $15,500

Closing costs: $3,200 

Total cash needed: $18,700

COCROI: 15%

Monthly cash flow: $235

50% rule: $287

I'm having a hard time figuring out what's better for my current situation and long term goals. I want to be able to have decent cash flow and cash ROI (which I have with both scenarios but clearly one is better) and I also want to have a good long term investment. What's better for me?

Thank you

Rubin