Is there a benefit from HELOC vs Hard Money?
Are there any benefits for using a HELOC over Hard money for purchasing a fix n flip? As i newbie without a lot of available cash one of the methods of ideas to finance a flip was to use a hard money loan that would loan 70% of ARV, and to use this loan for part of the rehab. I would need cash for closing and the difference of what the loan doesn't cover from the purchase price after the rehab money is put in escrow. This is assuming im comfortable with my margins and my monthly payments and holding costs.
Ex. purchase price : 103k
ARV: $165K x 70%=$115500( hard money loan)
rehab: $30k(in escrow)
closing cost and cash needed @ closing $28k (HELOC)
The numbers are just used to give an example and aren't any actual numbers. I would like to hear the opinions on this type of financing. Assuming I'm comfortable with my monthly payments and holding cost and aiming for 90 day total turn around,