How much cash have you put into the deal so far?

I expect my cash on cash return to be over 90%.

One solution I’ve seen is closing the purchase in cash, then securing the HELOC afterward, though this carries more risk.

If you do decide to start flipping homes- as a new investor you can either self finance with all cash, or you can contact a commercial lender like myself and expect terms to be 75-80% of the purchase price with 100% of the rehab financed through a draw.

If your a cash basis taxpayer you can’t take the loss until realized.  

Rent by room / house hacking / co-living should deliver significantly higher cash flow than a traditional rental. 

Assume break even cash flow while rented which includes a generous $600/mo repair fund. 

You will get way better loan terms than you would on a Cash out Refi as a partnership entity with no RE experience.This is all very theoretical, can you share the actual numbers so we can help you more?

Using a heloc as 1st mortgage really only has a major benefit if you have idol cash sitting around from your paychecks. 

Back when I was in finance, we had a broker who was charging a family 2% for management fees on their cash that was only making 0.3% at the time.