Just to be clear, the play here is to purchase a fixer upper for say $100k cash, put $20k into it, have it appraise for $150k, and then take out a traditional 80/20% loan. 

@Krista Burke Welcome to the real estate world; where there are choices to see what best suits your time and money. 

Is it a good choice to wholesale property with tenants inside?

The best way to handle a hard money loan if you do not qualify for a traditional loan is to refinance out of the loan after the prepayment or sooner if you do not care about absorbing the pre-pay into the refinance loan.

An example would be borrowing $200,000 at 12% interest then using the money to purchase a $120,000 home, spending $80,000 on renovations, and selling the house for $260,000 and making a $60,000 profit.You could also use a hard-money lender and pay the higher rate just because you can't qualify with a traditional lender.

@Huong Luu accountant, and mortgage broker usually in combination will lead you to the correct choice for your personal circumstances.

I plan to purchase this property with 20% down traditional mortgage. 2.

Something to watch out for is traditional property management companies offering "str management".

What are your thoughts on the choice if it is a SFH flip?

I am a new Investor who wants to make the right choice in my first investment move and I have two options that have me torn.