Interest only payment Heloc to finance first deal

[Reggie Burnett]

I'm looking to acquire my first deal this month.  We are looking to finance it with an interest only heloc (against our pesonal home).  Hope to have a total balance of 90k (for purchase and  rehab).    You guys think this is an ok approach?  Obviously looking to flip and pay off the heloc with the proceeds quickly.

[Shannon K.]

Some people advise against borrowing against your primary residence. If you haven't done flips before, how comfortable are you that you can complete the flip? Will you be working on it yourself or do you have a good set of contractors to work with? Does your bank allow a HELOC to be used for investment purposes? There are a lot of questions to answer before putting your primary residence on the line for an investment property.

I am currently rehabbing my first "live-in flip" to pull a HELOC in the spring/summer. I have done flips with other teams before and I also have a partner that flips 50-60 per year at his job, so I am comfortable using a HELOC on my primary residence knowing that we can complete what we've set out to do. As Brent said, make sure the numbers work before making a move!