HELOC for Fix and Flip - Advice Needed

[Carlos Hernandez]

Hello everyone,

I'm looking for some guidance on my plan to use a Home Equity Line of Credit (HELOC) to fund a fix and flip project. Here's a summary of my financial situation:

**Income:**

- I earn an annual gross income of $48,000 as a journeyman carpenter.

- Additionally, I've been running an Airbnb for the past 14 months, generating $52,000 in annual income.

**Property Details:**

- I have a remaining mortgage balance of $247,000 on the Airbnb property.

- Our conservative estimate for the property's value is between $400,000 and $450,000.

- My monthly rent is $1,600.

- The monthly mortgage payment for the Airbnb property is $2,250.

- I currently have approximately $250 in credit card debt.

**Credit Scores:**

- My credit scores are as follows:

- Experian: 631

- TransUnion: 570

- Equifax: 581

- I'm actively working on improving my credit scores by reducing my credit card debt and aiming to achieve a medium score of over 620 by mid-December.

Now, I'm considering using a HELOC to finance a fix and flip project, with a planned timeline of 3 to 5 months. If anyone has insights on whether this is a realistic approach or if there are alternative financing options or strategies you recommend, I'd greatly appreciate your advice and expertise.

Thank you for your input!