Hi Joe,Using a Home Equity Line of Credit (HELOC) on your primary residence can be a practical and low-cost way to fund flips, especially since the terms you mentioned include only a $200 yearly fee.

Investment Info:Single-family residence buy & hold investment.

It would be a primary residence.

@William Bohan, Yeah, being a CA resident you'll have to do a 1031 exchange or your tax will approach 40%. 

@Jonathan Greene I'm not sure what you mean by "most will not cash flow as an out-of-country investor" as it might suggest that the cash-flow of a given property has something to do with the nationality or residence of the owner but, in any case, you're absolutely correct that, historically, the net rental yields of LTRs in US cash-flow markets like the Mid-West have been typically higher than in the average European market, although that wouldn't be the case for many other US markets like California or New York.

Quote from @Erwin McClain: I had rental properties out of state but I have been renting rooms in my primary residence for over 10 years since my 2 boys have moved out.

Investment Info:Single-family residence fix & flip investment.

Investment Info:Single-family residence buy & hold investment.

Based on the tenor of your posts, I've got to ask - do you have your primary residence squared away?

Take the $250,000 primary residence exclusion every two years .