Using home equity instead of Hard Money

[Rafaella Almeida]

Hello BP community,

My husband and I have equity in our home and our rental. We want to expand our portfolio with hopes to be financially free. My husband does not like the idea of getting a HELOC for he thinks it is too risky. I introduced him the option of financing with hard money. He feels better to finance through hard money since you do not jeopardize your own house. On the other hand, I feel that by getting a HELOC we may pay less interest and may be easier to get the money. I believe we would be able to raise over 100k with a HELOC.

We've never done a flip or a BRRRR. The only experience we have is renovating our own properties.

Which approach would you think it is smarter for a first time flippers or BRRRR.

Thank you,

Rafaella