The DSCR loan will have one.

Account Closed said, income and assets are the only "hassle" with a conventional loan.

I do not have any loans through Flagstar Bank, but I would talk to them prior to moving it into the LLC.

Would a HELOC or home equity loan on my personal home be a good idea to fund this?  

In addition to conventional loans and FHA loans, if either you or your wife are veterans, the VA also has a rehab program.I'd be happy to discuss my rehab experience both as an investor and as a mortgage broker, and at least help you think through your options. 

Home 1 is ideal for a fix-and-flip loan to fund the remaining $90K, which I can help you evaluate options.

I know that interest on the acquisition loan can be included in the cost basis since it’s inventory.

Most 1-4 unit real estate investors are using DSCR loans right now for any buy and holds while flippers lean on higher leverage bridge/fix and flip loan options with higher interest rates.

Personally, I'd cash-out refinance into a 30 or 15 year loan.

I argue that more money in the hands of the rehabber makes the loan safer.