Well, I guess since no else has responded yet, I will give you my perspective but it's not worth much as I have never used any either.
But the gist is, HML's are a tool like any other. There are situations where it makes sense to use it and other situations where it's a bad idea.
If it's a slam dunk deal where it's going to be a quick flip and there is a pretty good margin to pay off the HML fees and interest, AND you have to move quickly, then go for it. Next to using your own money, it's the fastest way to get capital for purchasing properties.
If it's a somewhat maybe not great deal where there are slim margins if everything goes right, then I would not use it. I would look for a RE partner and share the spoils instead. They aren't called "hard" money loans for no reason.
Also, HML's have requirements too. You said you don't have much money to start with and that you are looking to invest out of state. HML's have origination fees and points that you pay up front. Plus they are going to look at your experience and the deal itself. Even though they have a somewhat different outlook on lending, HML's won't lend to just anybody either.
Best thing would be to look up some HML's and talk to them about what you want to do and in what scenarios they would lend to you and what the up front fees are, how they pay out your loans, etc.
Here's a group I met a couple of years ago at a REI in Ft Worth, they seemed to be straight up and everyone there liked them.
http://www.emeralddolphinenterprises.com/
