HELOC loan to fund rehab (Flipping)?

[Frank S.]

I have enough money to purchase a property with cash , but it would essentially be all of my savings. I found a local credit union that will provide 90% HELOC for investment / flipping properties .

I would be using the HELOC to fund holding costs , rehab etc..

Does my strategy make sense ? Would there be a better way to finance this ? HELOC closing costs will be approximately $1,200 with an 8% rate. My one concern is that the appraisal may not come back satisfactory as most homes that are flipped are not going to be eligible for bank financing . What are some issues with a home that I should try to avoid as they would result in the appraisal failing .