Pulling Equity out on a Construction to Perm

[Falon Sexton]

Building a duplex and applying for a construction loan. We own the land free and clear. We will be using the land as collateral for down payment on construction loan. The cost to build is about $180k and the land is valued at $125k. The bank said we could use the full appraised value of the land towards the down payment. We have the option of having really low mortgage payments of around $600 or we can pull cash out of loan prior to closing and have a monthly mortgage of around $1200. We would most likely use the cash towards a flip. When fully rented out the duplex should produce $2600/month. Do we take the cash for a higher monthly mortgage or do we opt for higher monthly cash flow from duplex?