For a flip, I assume I would pay off the HELOC once I flip?  

I was going to do this, but I changed my mind after talking with my target demographic (my kids).

Hello @Sufyan Minhas,What you have in mind is doable.

Nathan keep in mind not everyone is a landlord most litigation in RE is between partners and investors suing GPs etc etc. 

Keep in mind that rates does not fully translate everything.

All that said, and to answer your question, I think a guaranteed check for 66% of the rent offers some peace of mind and limits potential loss. 

HELOCs are fine, but keep in mind that you really only want to use 50 percent of less (each) of your available equity just so you aren't creating a problem that you can't solve later if the value of your personal residences fluctuates.If you both have W2 jobs though, have you looked into getting qualified together and just getting a loan, 10 percent down each?

Quote from @Melanie Baldridge: Why I like investing in real estate more than 401(k)s.Both offer tax deferrals, but here's the difference:If you're making pre-tax contributions to your 401(k), then withdrawals = ordinary income tax.With real estate gains, you're paying capital gains tax (which is typically lower).Plus, RE investors get:1.

It forced me to reach out to developers, to engineers dozens of local builders and most important like minded individuals.

@Cole HarrisKeep in mind that square footage has a lot to do with pricing as much as bedroom count and/or revenue.