HELOC Investing Strategies
Assume you have a 100k HELOC, I understand the leverage power of purchasing 5 100K properties using 20K down each instead of paying cash for 1 100K property, this concept seems to work best with buy and hold properties, in my opinion anyways. What about Flips? It makes sense to me to pay cash for a flip assuming you have the purchase price and rehab price available in a HELOC, considering the idea that your expecting a fairly short project life span. Would it ever make sense to seek traditional bank financing (assuming the property is financable), use a portion of your HELOC for a down payment and rehab expense. Just curious to hear others thoughts about using HELOC for flipping instead of buy and hold.