Using a HELOC to purchase next Fix & Flip

[Ezra Henderson]

Hey guys, I need some advice. I am close to finishing the rehab on my first Fix & Flip, and am looking forward to starting a new one as soon as possible. Here's my problem:

I have pretty much all of my money to invest tied up in my current flip, I bought it with cash, did the rehab with cash, and my original plan was to wait to purchase my next flip until I sell the first. But now I don't really want to wait (30 days to close on the one I'm selling, and then another 30 to close on my future flip) and would prefer to buy my next flip ASAP. 

Would it be dumb for me to get a HELOC on the flip I'm working on now, and use it to pay the downpayment on my next flip? Financing the remaining 80% + rehab costs with a HML?

I know that's two loans... and a lot of leverage... but I can't think of another way to avoid waiting 60 days before being able to purchase my next project. Do you guys see any problems with this idea? Or do you have any better ideas?

My current flip was a steep learning curve but overall is going awesome (i actually stayed on budget believe it or not lol), and my realtor thinks he can sell it for 50k more then I was originally planning on... so I guess I was being a little too conservative with my numbers haha. My plan for the future is to start financing my deals with HML's rather than paying all cash, so I could potentially have five projects going at once rather than just one.

Thanks!