We hold a license and face criminal penalties . 

If this is financing for a stabilized property rate carries more importance but rate combined with origination fees, pre-payment penalty and term in which you intend on keeping the loan in place are all considerations which together should help in deciding the best financing option.

However, strict IRS regulations apply, including prohibited personal use and mandatory income and expense management through the IRA, with penalties for violations.

You’ll have a pre payment penalty.. likely 3/2/1 or 5/5/5Bottom line.

Quote from @Muhammad Kashif: I would seek the advise of a CPA on this one..

Using your first property as collateral could help reduce the cash you need upfront, but it’s essential to weigh the risks and it's not really recommended specially if this will be your first.I recommend focusing on building reserves or seeking partnerships to fund flips.

Readers should seek professional advice.

I’m seeking locations with appreciation potential while also house hacking. 

This is a post-closing penalty charged by the Escrow Administrator to extend the renovation period beyond the maximum renovation term of 180 days in the event renovation is not completed within agreed upon terms.

As most investors seek to do in real estate, we want to generate positive passive income through multiple avenues such as equity, cash flow, and even tax advantages.