Using a HELOC to finance flips

[Jack Puso]

My primary residence was a short sale I purchased a few years ago so I have built over $275,000 in equity built up. I also have an investment property rental with a mortgage and about $80,000 in equity on that. I have a third property owned with a partner that also has about $50,000 in equity. I was thinking about opening a HELOC on my primary to finance some cash flips in the area I own the other properties. I have done 2 flips in the area but the construction loan and closing costs took a nice piece of the profit so i was looking to finance it in cash. Is using a HELOC on my primary the best course to take, looking for alternate suggestions.

Thanks

[Edward Rhoads]

I love HELOCs as a flipper.  No points.  Low interest.  Best of all I don't have to spend 2 months filling out and sending paperwork on ten different houses each and every time I do a flip.

So, yes HELOCs are great.   I have two, one on my primary, and one on a rental.  Thank you Huntington Bank.

If you are very advanced you can use the HELOC as a down payment on a private loan and stretch it even more, but you might want to hold off on that until you have the numbers down better.