Finance a house flip with 100% HELOC

[Chris Barry]

Hi there,

I would like to know if is advisable to buy a home to fix and flip and close on it with 100% of the payment coming from my HELOC. My home is free and clear and I have a $250,000 HELOC. I would like to buy, say, a $150,000 home, renovate it and flip it within 6 to 8 months. I don't know that I can get any other type of loan right now given my circumstances. That is why i would like to use my line of credit to make the purchase.

Any comments or suggestions would be greatly appreciated.

Thanks,
Chris