IM NEW! | Can i/Should i use a HELOC to fund my first flip?
Our primary home is paid off after 2 years of pouring every penny we could into it. The market value is about $300k. We bought it as fixer upper for $188k, renovated and now plan to lease it out.
We (my husband and i) are driving ourselves nuts trying to agree on the best way to fund our first flip.
*The reason we have decided on a flip as our first investment, is because we need the quick cash to build up our reserves to eventually buy rental properties. Our end goal, to grow a profitable portfolio of rentals that will support our growing family.
Since we burned through most of our cash paying off our current house, we are researching a HELOC or Home Equity Loan as a way to get started without waiting a few years to save our reserves back up.
Does anyone have advice on this?
Smart or dumb? Why?
What should we watch out for?
Is there a better option?
Sincerely - "Motivated & Lost"