Using HELOCS as funding source...

[Ryan Swan]

I have three rental properties each with a high amount of equity that I plan to tap with HELOCs (both as a source of funding and for the equity stripping asset protection). I'm analyzing some potential flips on the side and realized I'd have more than enough cash through the lines of credit to fund the purchase(s). This seems like a much easier route than hard money lending (no hoops to jump through), and also has a much lower interest rate (around 4.25% on the lines). I know that the interest rate on helocs is variable, but I don't expect it to skyrocket during a short holding period of <6 months for a flip. Are there any other pros/cons that I'm missing here? Is this a common funding strategy?