Pay cash and refi later? Or 20% down?

[Dave Mosher]

First SFR deal is getting closer and closer, I have it narrowed down to 2 and now I am contemplating how I am paying for it. The plan is BRRRR. I have 2 options:

1. Go for a 20% down conventional mortgage.  Rehab rent and refi.

2. Take out a 100% Home Equity Loan (not line of credit) from my credit union on my personal home and put some cash with the equity loan for a cash purchase. My thinking is if I go in with a cash offer I can get a better price.  I am shooting for a home between $85k-$100k.  Then after I get it rehabbed and rented, refi to get my cash out, and if it appraised high enough 100% of my own money that I put in

Thanks in advance.

[Uchenna A.]

It is critical you understand all the terms. When a bank tells you there is no seasoning period, what that means is that they can immediately refinance BUT can only give you 70% or 75% of WHAT YOU PAID FOR IT.