Help a newbie understand purchasing w/ a HELOC

[Jeremiah Lee]

Hi There!

Hoping I could please get some help with some newbie questions.  

Let's say I have a $150,000 HELOC and i'd like to purchase a SFH out of state which I plan to buy and hold.

-Can I use a HELOC to purchase from an Auction or Auction site like Auction.com?

-Let's say I purchase a SFH for $120,000 and put $20,000 into renovations. Now the home appraises for $180,000 and I want to place this under a 30 year fixed loan. Because I have at least 20% equity, I should be able to pull out the equity, pay back my HELOC and keep this as a 30 year mortgage, right?

-Using the same SFH for $120,000, putting $20,000 into renovations, but now this time it only appraises for $150,000. If I want to convert this to a 30 yr loan, I would pull out all the equity except for $30,000 which would act as my 20% down. I would pay back $120,00 on my HELOC, which would give me an outstanding balance of $20,000 on the HELOC which I would need to pay back to the HELOC. Is this right?

Thanks!