There is a workaround this with a lower seasoning requirement as long as 100% of the cost (PP + Rehab) does not exceed 75% of the new appraised value.

It drives me nuts when everyone quotes a five-page post just to address one sentence, then the next person quotes both, then the next person quotes all three, etc.

Depends on really what you are looking for:-Speed - some HMLS can go "no appraisal" so can close very quickly and beat cash offers if you are in a competitive market to buy-Interest Rates - can range anywhere from around 8% to 13% (same with "points") but not usually as huge of a concern for flippers since the terms are so short-Leverage - depending on your risk appetite / capital - this is also a top concern for some (almost always over and above rates/fees) can see anywhere from around 80% LTC to even mid 90s LTC (including 100% of rehab budget)

If you can share the address it could answer some questions.

We back into the "strike price", meaning the maximum price we're willing to pay for a property, by starting with a conservative ARV and then backing off our required profit, the rehab cost, the time value of money (carrying costs and interest), and a contingency reserve for unexpected expenses.

I have decided to look into a heloc, I'm a bit newer into realest state investing, I have completed a couple of fix%flips this year, I currently use hard money for the purchase with 10% down and I cover 100% of the rehab, with that said even just doing a couple of homes at a time, I find myself around 200k out of pocket, I think it would be a bit easier on myself and wife if we utilized a heloc vs just cash, my primary should appraise around 1.1m and my mortgage is 640k, I'm looking at pulling about 250k for a heloc, I don't want to refi the home and cash out as I only want to pay interest on funds as I use them ( I know I won't always be using the heloc cash) Any advice or even knowledge for people in a similar situation, and anyone have a referral for a Heloc?

A simple example might be rehabbing a 100 year old home to be a rental.

There are plenty of short term rehab loans available that will help with the initial purchase, give you rehab money, and don't have any type of prepayment penalties.

For instance, we stopped originating these three rehab programs and instead originate a construction loan on our balance sheet that we have complete control over.

Loan $300k purchase price and $60k rehab which they offered 100% funding for in return for $18,730 which was 4 points down, $995 legal fee, and $2,995 processing fee according to their term sheet.