Line of Equity

[Douglas Slingerland]

Hello,

I am new to Bigger Pockets and registered to ask a particular question:

I recently am able to purchase a family home where the value is in the ~140, however, it is in a state of disrepair and will need about 40,000 worth of work, so probably worth about 80-100.   I can pick up this property for 35,000, which would immediately give me positive equity.

The question I have is:  Do I take out a line of equity credit to repair the home, or do I use that credit to purchase a second investment property and flip/rent and repair the home as it comes in. 

Would repairing the home give it a greater value that I can use to get a larger HELOC ?

I'm new to all of this - so any advice or pointers or "here's what I would do in that situation" would be greatly appreciated.