First Fix & Flip - Two Financing Options

[Nicholas Smith]

Hello BP, 

I would appreciate any feedback or suggestions on the following scenario.  I'm under contract for my first fix and flip in East Chicago, IN.

Purchase Price:  $50,000

Rehab Costs: $30,000

ARV: $115,000

I have two financing options that I'm considering.

Option 1 - Hard Money

APR - 13.5%

Origination Fee - $3,000

Appraisal/ Inspection Fee - $350

Option 2 - Offer from family members (Aunt & Uncle)

Family members bring $40,000 to the table

I bring remaining $40,000 plus holding costs

Split sales proceeds on a 50/50 basis

Other pertinent details: I'm hoping to hold the property no more than 6 months. I am a licensed real estate broker so I'm representing myself in the purchase (estate sale on MLS). I will be listing the property once rehab is complete. And I will have to manage the project because my family member is not in the area.

Which option would you all suggest??  Any input would be greatly appreciated.

Thanks,

Nick