HELOC for 2nd property?

[Ryan Arsenault]

Hi all! 

I purchased my primary residence back in September 2020 in Maine. We closed on it for $385k while putting 20% down and it was appraised by the bank at $420k. Over the past year we've been rehabbing it. I would guess ARV around $490-$500k now. So with that being said, we have about $180-$200k already in equity. A HELOC would get us access to about $100k.

I unfortunately dont have the capital right now to purchase another property using a conventional loan. A FHA loan doesn't work either (really don't want to live in a unit of a multi). Besides finding a partner or private money, would a HELOC to utilize the BRRRR strategy make the most sense? Any other ideas I'm missing? I do have to admit its fun to come up with these creative financing strategies regardless if you utilize them or not.

I know HELOC's/second mortgages have a bad connotation and it certainly scares me, but paid off in the short term it seems to be a powerful tool.

Thanks everyone!