home equity line of credit for flip

[Susan Capeta]

I have some cash but not enough so I was thinking for getting a line of credit on my house which has a little equality to buy a house CASH and fix it and flip it... what do you guys think about getting a home equality line of credit to buy a house to do a flip? 

pros cons?

any suggestion?

[Michael McCartney]

I am basically doing the same thing. Not flipping but buying, repairing and raising rental rates for a buy and hold. The HELOC will be paid back with the increased rents.

If you're buying the house cash you wont have to worry about repairs the bank will require the seller or you to make in order for the house to close.

HELOC is a good way to go because it can be really cheap money compared to what people are paying hard money lenders.

The timeline for getting a HELOC for me was 30-45 days. This might be a problem if you have a house in mind that you want to buy. In that time someone else could come and snatch it up.

Also fees for the HELOC are pretty low but you will have to pay an appraisal fee for your current house which will be $400+.

Hope this helps.