Fix and Flip Lending Questions

[Brandon Domenico]

I am brand new to BiggerPockets and am looking for a little bit of advice. I have recently found a property in Montana that I believe would make a great candidate for a fix and flip. I'm entertaining ways of funding it, and being new to this whole thing, I feel lost. To give a bit of background, lets talk about the property. It is a 1/1 900sf currently listed at $120,000. The average comps in the neighborhood are all 2 bedrooms, but listed well over $220k. 

My current idea to fund this project is with an interest only HELOC on my primary residence, however, I am only eligible for a $150k line of credit. Ive estimated $40k in rehab on the investment home which would put me short roughly $20k after holding/realtor fees.

My biggest question is: Is it possible to buy the investment property with a HELOC and then turn around and apply for a second HELOC on said property to fund the renovations? And even if it is possible, is this crazy?

Are there better/more creative ways to go about funding this?

Also, I do have cash reserves to pay off the HELOC's but would prefer not to use them to fund the actual renovation.

Thanks in advance to the BiggerPockets community for any and all information. You guys are the best.