HELOC on primary home

[Jeffrey Ascough]

Hey guys. I started invested in the past ~18 months. I've completed 2 successful flips (30% ROI) and recently bought a great $100k rental unit cash flowing $1,050 a month after all expenses. All of that was done with cash. Now I am looking to begin acquiring 3-5 rentals properties a year. I've met some great private money lenders who can allow me to quickly close deals but I'm also interested in getting a HELOC on my primary residence. Anyone do this recently and if so, any advice? I have about $100k in equity I know I am trying to do a lot and do it quickly but I always make sure to have 50k in reserves and also make a good living in other job so overly concerned with LOC on primary home.

[Josh Walker]

@Jeffrey Ascough - I have done this and love utilizing a HELOC on my primary residence for investing. Below is a link to a blog I posted not long ago on a few ins and outs of this. It also covers what to look for when searching for the right HELOC. A couple of thoughts...

- I would consider moving that equity out of your rental properties and into your primary residence and then doing the HELOC. I would always rather have the equity in my primary vs. in an investment property. If your financial world unexpectedly gets turned upside down, you would rather have the banks foreclose on rentals than on your primary.

- There is A LOT of freedom and flexibility in being able to use a HELOC on your primary to fund your investments, flips, etc.

I think the blog below may be very helpful.  Let me know if you have any questions or want to discuss further. I wish you luck! 

https://www.biggerpockets.com/...