We need options for loan types that can fit this need to fund the purchase and rehab.

Generally, materials are broken down into two categories:Rough Materials (lumber, nails, screws, brackets, piping, fittings, mortar, wiring, outlets, switches, drywall, etc.)Finish Materials (tile, grout, flooring, paint, light fixtures, plumbing fixtures, door knobs, etc.)The way that I structure my contracts is that I buy the finish materials and have my Contractor provide all rough materials.I think it's strange your Contractor wants you to buy piping, brackets, etc, because I would classify that as rough materials.There's no way I would ever want to be responsible for buying all of the piping, fittings, elbows, p-traps, etc for my Contractor...I would be at Home Depot all day buying and returning stuff! 

On the commercial end, where I operate, deals are brought to us by brokers or lending institutions wanting to get rid of a note either in default or one that no longer fits their portfolio.

Loan terms for this transaction structure are excellent and now is a good time to lock in a low 10-year fixed rate on the financing.

Everyone is different and there is no one mold fits all.

Make sure that you have an excellent GC lined up who understands the process and is comfortable working with the 203k loan.

The deals that fit the 1%, and especially 2%,  rule are going to need to be made, most of the time, in the Charlotte area.

Anyway, I am looking at doing my first BRRRR and have considered two paths to getting the 'B' done with a cash offer:1)  take a HELO out of my existing rental to supplement the cash I have on hand for the full amount of purchase2)  partner with someone to supplement the cash I have on hand for the full amount of purchaseMy concern is, even though I have excellent credit, will using the HELO for the purchase hinder my being able to complete the refi on this BRRRR?

And you do that by exposure to the business by getting in & getting dirty.So get out there and start exploring, get with us if you have any specific questions, and find out which of these you were made for because all of your knowledge, experience, network, passion is going to be a most excellent fit somewhere. 

You generally get a little better rate because they have a bigger pool of money to draw from, but if you don't fit inside the box exactly they can't resell it, so they won't do the loan.That's why one of the first questions I ask myself when dealing with lenders is, do I think this one will "fit in the box" or not - I want the best rate of course, but I also don't want to waste my or the loan officer's time if I know it's probably not going to work from the get-go.