I wouldn't say some underwriting guideline was not a secondary requirement but that such was not a customary requirement......things do change, I don't know.It could be the guidelines of the mortgage wholesalers in that market.

I would look at the spread between the CC and the HELOC's margins.The HELOC provides the borrower a 1098 int at the end of the year so its easier to bookkeep for the interest cost and is less hassle since it can be written off as opposed to credit cards you have to search through all interest statements and trace which interest expense was attributed to investment/business use otherwise it cannot be written off which is an added hassle for end of year taxes.HELOC's can only be written off up to 100k max for one primary and secondary home as this is the "home equity indebtedness," limit.

I see from your profile that you are an engineer, so I know that you understand the math well enough to know that it's very possible to flip a coin on heads three or four times in a row (or more), but also, that's just luck.

That is pretty standard, conventional meaning secondary market loans or portfolio loans that a lender holds.

My strategy if they accept the first (cash) will be fix and flip with buy and hold as a secondary option.

To be clear about the math, when you say 25%, is that 1.5% of a typical 6% commission?

They're going as high as 90%, but that's a more expensive product.The PMI issue might make a difference in your decision though, you'd have to get some quotes and do the math

Worst case (by my math) if I get the property at 105-110k, with the hard money interest rate (and using the 50% rule) the cash flow will be somewhat small until I refinance into a conventional.

also how can the LTV be 60% but then the down payment be 30%, that math doesn't add up?

I think you have to look at the math.