Fix and Flip - HELOC advice/help needed

[Karl Kyler]

Hi fellow BP members,

I am currently working to secure a fix and flip.   I have gotten a couple of quotes that are up to 200k in repairs.  I am considering on doing some of the work myself to increase my profit margins.  

Here are some of the figues:

ARV: $420k

Repairs costs: $180k-200k

Purchase price: $120k

One of the contractors is a friend who suggested that I can do the work myself and he would help/jump in and do the things that are outside my abilities.  If this is the case, then he said material costs would run about $75k.

What I am wondering is this, what stops me from buying this home with a private loan and then opening a HELOC which can be used to buy the materials I need to fix the place up. A HELOC would be way less expensive than a hard money loan and wouldn't have any of the upfront costs.

Any help is greatly appreciated.

Karl