Hard Money, Cash out refi, or HELOC for flips and BRRR's

[Katie Shepard]

Hi! We are looking to purchase our 3rd flip. We're short on money for the reno and I was naïve in understanding HELOC's. I thought the amount we could pull was purely based on value-PITI but now realize it's tied to debt/income.

If HELOC's are tied to debt/income then how does the BRRR strategy work? If we have a HELOC on an investment property does that preclude us from getting a HELOC on our primary residence? Would it be smarter to do a cashout refi?

Currently I'm approved for a $40k draw on HELOC for our investment property (duplex). I owe $170k, it's worth approximately $350k. If I include my husband we could get more on the HELOC but it seems we could have more buying power if we purchase separately.

I'm also in contract on a property for $82k, I planned on using HELOC money to purchase and personal funds to renovate and then sell.

Long term I'd like to flip a couple of homes a year with buying to hold as my primary focus. 

Any advice on how to proceed? 

Any advice?