I have not had good luck finding any resources (realtors, lendors, contractors, etc)  that are ready to go even though I have cash and feel I should not have any trouble securing lending.Regards

The loan with a security interest in the house is 1st position is for the $261,000 purchase price with 2 points up front , 11% interest with interest only monthly payments, remainder due on sale.

Be very conservative on your ARV (final sale could be 10%-15% below your asking), don't forget to factor in construction overruns and discovery work (typically budget a 15% cushion), don't forget to budget acquisition costs (6%-10% of purchase price), selling costs (6%-10% of ARV) and holding costs (be conservative it will almost always take longer than you think or than your contractor tells you and may take more time than anticipated to sell and for buyers to secure funding).  

Go for it, as long as you can secure funding to pay it back before it is treated as an early distribution.

Hi @Lori Beard,I work with a Turnkey Provider and, from our experience, the two best ways to secure your investment is by purchasing a property from a company that only manages properties they have personally repaired.

This could be in the form of offering to pay the security deposit on their new rental as well as their moving costs.Gail

Most rentals with higher perceived risk can be offset by requiring an excess security deposit and/or a third-party guarantor for the lease, and/or prepayment of rent. 

Ask them how much their rent and security deposit is.  

@Mathew Gunkel, I know it's emotionally logical to put your primary up for extra risk as a last resort, rather than first cab off the rank, BUT, that's why the PURPOSE for the loan should be really carefully considered in the first place.In case I came across as someone who knows what they are talking about, I don't actually know the HELOC rules/interest that Lenders have regarding using your primary as security vs your investment.

Should I get a secured or unsecured?