How to use primary residentce equity ?

[Jorge Diez]

Hello BP,

I have about 200k in equity on my primary residence. Wanted to see some peoples opinions on how I can use that equity to invest in real estate HELOC, Cash out refinance ect. Looking to either flip or purchase a rental property. Thanks in advance for your feedback

[Kellie Powell]

Quote from @Jorge Diez:

Hello BP,

I have about 200k in equity on my primary residence. Wanted to see some peoples opinions on how I can use that equity to invest in real estate HELOC, Cash out refinance ect. Looking to either flip or purchase a rental property. Thanks in advance for your feedback

We just did this recently, only on a smaller scale. We have 70k in equity in our primary residence. We got an HELOC at a local credit union. Used part of the money to make a cash purchase of a home to flip, used another part for all the other cost involved in rehabbing the home, including holding costs. (We also took advantage of the 0% interest on our Lowe's credit card, so that portion didn't come from the interest bearing HELOC) We received 4 offers in 48 hours after listing it for sale. We turned a $50 investment into a $86k house.