Portfolio/Conventional -Which is more advantageous in MY scenario

[Jerry Fowler]

Scenario: 

• Purchasing primary residence with the intent to flip/hold & rent(still ..researching)
• ~40k cash for investment purposes(rehabbing, etc)
• Portfolio loan option 1: 24 year 3.99% fixed, no dp, no pmi
• Portfolio loan option 2: 30 year adjustable after 10 years 3.49%, no dp, no pmi
• Traditional option: 30 year fixed 3-3.125%, will require dp, possible pmi.

Ideally, we want to preserve as much of the ~40k as possible for rehab purposes. The portfolio option looks most appealing to me because we don't have to touch the ~40k, but after doing some reading, I'm not so sure this would be the smartest move. What would you do, consider, ask in this scenario?

[Robert Blackburn]

Maybe take the Portfolio 2 option. As long as you have a tenant able to pay for the loan with even a little bit of cash flow the appreciation of the house should give you some equity and help with refinancing within 10 years. And you could use the money from the refinance to go towards another property.