If there is a second mortgage, was it used to purchase the home or was it an HELOC.

. $500 goes to HELOC.

I have taken out a HELOC at 70% on the second to have cash on hand for further investments or similar buying opportunities.

REO property on the market for 180 days with no offers, asking price is 176K, ARV 225K, repairs around 25K.I plan to hold it for around 90 days to do repairs and to meet seasoning reqs, and finance it thru a HELOC if it makes a difference.

Take out a HELOC on that property if you can, and then you will have a true legitimate lien (not one that was fabricated).

Unless the original seller was a bank and can originate the HELOC, the seller can't just make a loan and put a 2nd lien on the property.The (giving money back) idea is probably what some sellers would use attract buyers with little to no down payments.

I spent pretty much all the money I had when I bought the last property back in Jan, so right now my liquid reserve is about $15K ($10K from Feb, March rent).My current monthly obligations are $190 (HELOC) + utilities bills + gas + groceriesOriginally posted by David Beard:Hoang, couple of questions:* How much are your other monthly obligations, such as the 1st mortgage on your primary residence, any consumer loans, and any credit card balances?

It grants the lender a security interest in your property.It sounds like when you refinanced that you had both a first and a HELOC.

I've decided to get a HELOC for my first flip.

Also, I think HELOCS are now non-recourse as well.