Can you provide an example of using a HELOC to flip a house?
Hello, BiggerPockets community. I am interested in using a HELOC to flip a house and repeating the process multiple times. What would really help me is a clear example with numbers of how this would work. Hypothetically, let's say my primary home is worth $350,000 and is paid off in full. I want to get a HELOC and use it to flip houses, one at a time, which would cost $150,000 total for home purchase and rehab. What is the average interest rate on a HELOC? What would my monthly payments be? What are the average fees associated with obtaining the HELOC? Can I pay off the HELOC after I sell the first flip and immediately use it to start another flip? Please provide an example using the numbers I provided and using the average costs and interest rates associated with a HELOC. I am sure there are some costs and processes I am forgetting so please include anything I left out. Also, if you have flipped a house using a HELOC, please provide your experience with your numbers as an example. Thanks to everyone in advance!