Should i use conventional mortgage or wait and use HELOC?

[Pascual Torres]

We found a house we like as rental property.

We could make an offer using conventional financing or should we wait to use HELOC and then refinance, essentially using the BRRR method.

If we waited and did the BRRR method, we could have a profit producing asset (about $170/month) without having any of our own money in the game after the refinance.

If we proceed now we would have to use conventional financing which we would have to use our cash for down payment and rehab costs. There would be little more cash flow but the COC returns would be much lower. Also, making an "all cash" offer with less contingencies would make it a stronger offer therefore potentially getting the place for less.

Any advice is greatly appreciated.