Help deciding between two loan options
New investor just starting out and looking for guidance. Buying a SFP for rental at $120K. Needs $50K in improvements. Improvements will take 2 months. ARV will be $220K. Using a line of credit to purchase property cash and I will fund the improvements. I will then roll the property to a conventional loan. Question is that I have 2 options from my lender and trying to decide what would be best.
Option 1
Conventional loan 75%LTV 30 year at 5.25%. Must wait 6 months from purchase to do the loan.
Option 2
Portfolio loan 80% LTV 10 year balloon @ 6% based on 25 year amortization. Do not need to wait 6 months and can do the loan as soon as improvements are done.
It would be nice to get the cash back sooner than 6 months but not necessary. I see pros and cons to both. What would you do?
Thanks in advance for the help!
Ben