Quash that assumption or they will be a ongoing headache.

That said, you'd better be ironclad on your assumptions about repair costs and ARV (even on a cash-flow property).

., I was under the assumption that there were even closing cost with a HELOC, at least some form of loan origination fees.

Yeah I think was under the assumption that over leveraged was a function of debt and equity; not income.

You are gambling and making assumptions on things you have no control over like interest rates, employment, etc..

All this is based on the assumption that you would keep the house you are currently living in, but rent it out. 

Yes, a 750 FICO is a great start but for any real sizable LOC he'll need a solif PFS (personal financial statement), resume, and proven track record.It is possible to get a 1MM LOC for flipping at a very good rate but that would require a significant net worth and track record in flipping.Your local credit union will probably be in the 50k range with the assumptions you've provided.    

@Brian Nordman - Your assumptions are correct.

It appears you have combined them both at 10%.Also, what assumptions are you using for the mortgage?  

Thank you Christopher,I guess you did not read the fact pattern correctly, or made assumptions outside of the facts.