Newbie needs advice on 1st BRRR

[Erik Bonales]

Hello BP, 

I currently have 87k in my saving and thinking of pulling a heloc from my home (another 80k) to be able to invest in my first BRRR. I would like to buy near me in Modesto CA. On average a 3B/2B 1,500sqf Turn key home runs about 325k. I am looking into getting a hard money loan to help with the BRRR property. Is this my only option to purchase the home cash?

I havent seen any properties just yet, trying to figure out how to fund the deal first.
Any advice is appreciated, thanks

[Ryan Wamsat]

It's all about the risk that you're willing to assume. However, I would not pull a HELOC from my personal residence. If things go bad, and they typically do for first-time rehabbers, then that could leave you in a worse financial position than where you are now. And, now your personal residence is at-risk. I would stick to hard money lenders, family, or possibly a partnership to supplement the missing amount. As hard-money lenders are a short-term loan, cash is not your only option.

Good luck, and welcome to BP.