Sell my secondary home and payoff debt or get a HELOC and Airbnb

[Shawn Wall]

Should I sell my secondary home or get 2nd mortgage/ cash out refinance/ HELOC?

I'm a 3rd year realtor($60k in the pipeline the next 6 months) ( with aspirations of flipping)  and my secondary home is ((owned for 10 years) (no capital gains?) bought a new house 3 months ago)) in a hot area.( Atlanta near the Beltline- a path being built around the city. Those that don't know, the Beltline is a huge catalyst for redevelopment in the city. The path extension will pass my house (1 mile from the property) in 12-18 months.

If I sell now I'll clear $200k( expected sale price $335k. (I just spent $40k renovating( all my cash) I have $30k (12%) in credit card debt and wife owes $150k (6%) in student loans ( she's a pharmacist 2 years out of school and makes $120k a year).

A)If we keep the house we will AirBNB. $150/night will be the rate with a goal of 20 nights a month. Mortgage/ utilities is currently $1100. Net roughly $2k/ month. Then sell in 3 years hopefully clear $300k

B)If we sell now, the wife will take $100k and put it towards her loans ( not a risk taker) I will payoff the credit cards and start flipping when I find a good project. I would use hard money.

Questions

1) If we do option A) can I use a heloc to flip and pay off cards? It's not my primary residence 

2) What should I do?

*apoligies for bad grammar/parenthesis  can't sleep, little drunk and wanted to overload strangers with info

*first post

[Thomas S.]

IF flipping is what you really want to do your best option is to sell, pay off your credit cards, and reinvest in that path.

Based on your wife's income of 120K let her take care of her own student debt. At 6% you do not want to be wasting the money from the sale of your house on that debt. She should be able to pay off her student loans in 3 years unless you two are living way beyond your means.

If you are living beyond your means you first need to assess exactly where you really want to be in life.