Can/Should I use a HELOC for BRRRR?

[Phil T.]

Hey all, I'm trying to figure out this BRRRR thing. I've got about $80-100k in equity in my personal residence. I'm interested in the BRRRR strategy, but would probably have to do it out of my area for it to make sense. Would it be a good idea (or even possible) to use a HELOC to buy a BRRRR property, then pay off the HELOC once I refi the BRRRR property?

Like I said, I'm not even sure that I can do this.  Has anyone else done this or does anyone have any advice about this?  Thanks!

[BJ Everson]

I've done this and continue to in the future. I basically use cash + line of credit that is on my personal residence to finance the acquisition and rehab of flips. LOCs are great and use just like cash for the most part, my bank even has a debit card for the LOC which makes purchases from vendors or HD easy. I'd start with whoever has your mortgage as they should be able to provide you a better rate and should approve you since they know your payment record with the current mortgage.