Use a Heloc to invest?

[Nicholas Knaebel]

Hey everyone! I am looking to use the equity I bought up in my personal residence to fund a house flip. I have roughly $161k in equity and more in liquid assets. I am thinking HELOC, as I can pay off and then re-use the money to fund a 2nd flip. Also, I can have no payments until I am ready to use the money.

Does this sound like a sound strategy to an experienced investor?

[Greg Kasmer]

Nicholas - Yes, it sounds like a sound strategy. I would suggest a few items: 1) Ensure you have cash on hand to make payments on the HELOC during the project, 2) Try and find a HELOC product that only requires interest-only payments (therefore reducing your payments during the project, 3) Build in some cushion on timing of the renovation and sales process for the flip in case either takes a few months longer. Good Luck!