HELOC for Renovation and Investment Purchase?

[Bob Mazza]

Up late last night listing to one of the podcasts and began feel like I found a way to make my next deal work through a HELOC on my primary residence. I would be targeting access to $100K.

I am currently holding 2 properties. A single family home (primary residence) that I bought as a short sale, bought for $450 w/10% down a year ago, recently appraised at $750K. The house needs work, probably a good estimate that 2 bathrooms and the kitchen would run $50K. This would put us with a great exit strategy on the primary, waiting until the 2 year mark for capital gains purposes, as well as access to another $50K is a great deal comes up.

To give you some other context on where I could access funds I also own a 3 family purchased for $250K + a $30K 203K loan - house hacked it a few years ago. Not much equity in it, won't appraise for more than $350-$375 and I owe $260K. She is a money maker though, $3850 monthly rent role.

I just refinanced my two properties and will be saving $400 per month so I figure the HELOC payment will not change my budget and would be paid off when I sell my primary or refi the additional investment property I purchase.

Does anyone see any holes in my processing here? Can I buy a property with money accessed from a HELOC? Can the bank remove my access from unused funds without me knowing?

Open to any other strategies as well, tried cash out refi on primary but jumbo loan limits make it unnattractive. Cash out refi on my multi family has also not worked out.

Time to make the next deal happen! I am excited to get work done on the primary and get us closer to flipping but always want more rental units!

Thanks BP

Stamford Connecticut Fairfield County