Advice on our strategy

[Holly Sarria]

Hi BP community,

We have been members since 2019 and have gotten such great advise and have learned so much just by all the info on here from you all. We'd first like to thank you all for contributing to our growth.
I'd like to explain a bit about our situation and the strategy we are wanting to take. Since 2019 we have been learning/researching about REI and trying to set ourselves up to be able to take the next steps.

We almost got started the summer of 2019 with looking to purchase something in JAX FL, but our trip out there was cancelled do to the hurricane and then 2020 happened. But know we feel more prepared and better educated.

• So we live in CA, in my parents second property. The property is a combo of two houses on one lot (we live in the front house). Anyway, we spoke with our parents and they decided to give us a private loan in order to start our real estate investing.
  
  Our Strategy
  Have my parents get a HELOC on this paid off second property. This would be our source for cash offer/rehab to a property.
• We plan on purchasing something OOS and using the BRRRR method.
• With the refinance portion of the BRRRR we can pay back the HELOC to my parents property. If we cant pull out all of the money to pay it back we would cover the rest with our own savings. (And if its successful the funds will be available to do it again.)

What do you guys think of this strategy?

Does anyone have any recommendations for a lender that would do a HELOC on a second property in CA?

Any info or advice would be greatly appreciated. Thank you guys for reading and we look forward to a conversation.