No mortgage on property but it needs to be Renovated, Hard Money Loan or Conv. Loan?

[Michael Ives]

Im currently about to acquire a single family detached with Seller Financing, however the property could make for a Great flip but also a decent rental property. The minor renovations throughout will seriously increase the value of the property but due to market conditions, I'm unsure if I should continue with the Seller Financing option and a Hard Money lender for Reno budget or just get a traditional loan to cover the cost of the home plus renovation. There's a few ways of going about this deal so I'm really just trying to hear out other people's opinions.  

[Kyle Baxter]

Quote from @Caleb Brown:

Quote from @Kyle Baxter:

Quote from @Caleb Brown:

I'd do hard money if you are flipping. If you decide to keep you can refi to a DSCR or conventional loan

 Hi, can you explain why? It's been my understanding that hard money loans are "last resort" options due to their higher rates and potential for recourse. I've seen many here suggesting hard money loans and I'm curious about the reasoning. 

 Hard money loans are expensive yes. The loans do cover the rehab. A conventional loan if you are not occupying a property is 15-25% for down payment. Then you'd have to cover the rehab out of pocket. If it is a rehab it might not qualify for a conventional loan. For flips hard money/private money is the way to go. Conventional is way more difficult and doesn't make sense if you are doing a flip. 

 Makes sense, thank you.