HELOC for Purchase of Second SFH Investment

[Brandon Sturgill]

I know there is quite a bit out there on HELOC's (so a link to some relevant posts would be greatly appreciated). Aside from performing some additional research, would someone be willing to provide some guidance on a strategy.

Home Purchase Price $77,000
Repairs $12,000
After Repair Value $129,000

This is a HUD home, so I am unable to resell until the 12-month occupant period is up. My plan is to assume a HELOC after the seasoning period expires (6 months) to finance a second rehab while I wait to list my main property that I will be living in. The home lsited above should be rehabbed by the time seasoning is achieved (so I presume the appraisal will go well...)

Has anyone used this strategy before, or have any advice on how to make this happen? As always, thanks for the responses.