Is a HELOC the right choice?

[Molly Morlino]

Please forgive me... my husband and I are pretty new to this business. We're currently building two rental homes in Kyle, TX and will be building four more within the next 18 - 24 months.

We're thinking of opening up a HELOC in order to build the remaining four rental homes. They're small homes, and cost about $30,000 each to build, so we would need to borrow about $120k. We purchased our home in 2013 for $260k and currently owe about $230k on it. The market has exploded here and comps are in the $350s right now - our home could easily reach $375k.

Our mortgage is our only debt, we both have 800+ credit scores, my husband is a Professional Enginer and I work part time... With all of our extra income plus the rental income on 6 houses we would be able to pay the HELOC back within 12-18 months. Would this be a good option for us? Or is it too much money/too risky?

Thanks so much for any insight! I love reading and absorbing everything at Bigger Pockets!