The Rehab Loan Process

[Brian Ellis]

What is the process involved when using a rehab loan?

Situation: I Only have equity in my primary home to utilize a HELOC. I just don't have the cash for a down payment on an investment property.

My solution: Fix and Flip a single family home, using a rehab loan. I am not able to use a rehab loan on a multi-family. I can use the profit from the ARV to pay off the HELOC, and gain some capital.

I'm worried for two reasons:

1. I don't have any experience using a rehab loan. 

2. I don't like the idea of borrowing against my house.

Thanks everyone!