Considering a HELOC for first but and hold, good or bad idea?

[Drew Oesterle]

Hey everyone. I'm new to investing, I have been in the analysis paralysis for about a year and have gained the motivation to get out. I want to find my first deal, however I struggle with how to finance it. I have read a lot of posts and books on creative finance, however I am not able to borrow from family and friends until I have a deal or two under my belt. I am considering a HELOC on the home I have right now. I bought it a year ago with the intention to fix it up and rent it out, however, due to some medical issues I have not been able to save up 20% that is needed for another house. I live south Denver and prices are very high right now. If I do use a HELOC, then how do you make the payments and have positive cash flow? Any suggestions? I have been doing a lot of research on Wholesaling lately and want to find a deal with that, however, again, financing is an issue. Any help would be fantastic.

[Brent Coombs]

If you're going to wholesale, why would you need finance? Your end-Buyer is paying for it!

If that sounds too simple, it's because: it is.

If you reckon you can find deals that are suitable for wholesaling, those SAME deals should be suitable for buy&hold with your HELOC and new mortgage combination, and paid for by rents!

If calculations show it won't cash flow - look elsewhere. The USA is a big country! Cheers...