Want to buy my first “Live in Flip” with Heloc

Hartford, Connecticut
Rehabbing & House Flipping
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Want to buy my first “Live in Flip” with Heloc

Andrew Guzman
Member since 2021 · 5 posts · 3 votes

Hi Everyone, I am a new investor looking to expand into real estate investing. At 22 I bought a 2-Family which i had for about 3 years which I am currently house hacking. I want to get into Live in Flips as finding a 20-25% down payment for another mulifamily is tought at the moment.

I was wondering if it would be beneficial to use my Heloc to purchase a Live in Flip. As in using it as a down payment and also using it for remodeling. 
I have been stuck not knowing what to do next because I havent been able to aquire enough funds to keep moving and I feel like this could be an opportunity for me to keep moving foward.

any information would be much appreciated! Thank you. 

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Kerlous TadresBusiness Member
Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
1y

Hey @Andrew Guzman, I’ve seen HELOCs work well for live-in flips, just treat it like an investment loan. Make sure the after-repair value easily covers purchase, rehab, and carrying costs, and leave room if rates rise or the project runs long. If the numbers still cash-flow on paper, it’s a smart way to keep moving without a big down payment.

[email protected]614-490-1163
Kerlous Tadres | Reafco Real Estate541 Reviews
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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Andrew Guzman

    Short answer: no.

    Why not just house hack again?

    0Reply
  • Andrew Einsmann
    Member since 2019 · 81 posts · 25 votes
    1y

    I would first build up your portfolio a little more before you flip again if you are using your heloc. I would use the heloc BRRR the house and do a couple more of them. Once you have the rental tenants in then you can refinance and pay off your heloc and you are back where you started with another cash-flowing rental property. I do not necessarily suggest the live in flip.

    1Reply
    • Andrew Guzman
      OP
      Member since 2021 · 5 posts · 3 votes
      1y

      @Andrew Einsmann If i were to do this, with property prices how they are here in CT, What i would get from a cashout-refinance would still not be enough to cover 25% downpayment + Closing costs. This is why im at a loss on what to do next.

      0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Andrew Guzman

    you'd refinance out of your current loan (assuming you had enough equity) and use a low DP loan again for the next property.

    0Reply
    • Andrew Guzman
      OP
      Member since 2021 · 5 posts · 3 votes
      1y

      @Nicholas L. Every Mortgage lended I have reached out too says i need 25% none of them will let me take a lower DP loan out. Am I doing something wrong? Possibly not looking in the right areas?

      0Reply
  • Kate Nixon Taylor
    Lender · Cary, NC · Member since 2021 · 122 posts · 29 votes
    1y
    What’s the goal with flipping? Hard money could be an option. I’m with the One Brokerage and could help with financing strategy. We have access to HELOC, hard money, DSCR, construction loans, etc. I’ll connect with you and we can figure it out.
    0Reply
  • Aaron ZimmermanBusiness Member
    Accountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
    1y

    I would try to get more funds to have more reserves. You're basically trying to leverage yourself more which can be helpful but if it goes The wrong way, you could put yourself in a hole you don't need to put yourself in

    [email protected]
    Brick House CPAs53 Reviews
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    0Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    1y

    The only time I really suggest someone to use a HELOC is for when they are using it for quick money; example flipping. If you are doing a live in flip and can do it knowing you will be refinancing no earlier than 12 months and can cover the HELOC, mortgage, expenses of flipping and any other items that come up (repairs to the other unit, and vacancy) you will be good. But just know the numbers including what you are going to be paying with all that included to make sure you can make it to 12 months.

    The McKernan Group4.957 Reviews
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    0Reply
  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    1y

    Hey @Andrew Guzman, I’ve seen HELOCs work well for live-in flips, just treat it like an investment loan. Make sure the after-repair value easily covers purchase, rehab, and carrying costs, and leave room if rates rise or the project runs long. If the numbers still cash-flow on paper, it’s a smart way to keep moving without a big down payment.

    [email protected]614-490-1163
    Kerlous Tadres | Reafco Real Estate541 Reviews
    WebsiteView Page
    2Reply
  • Samuel Eddinger
    Meriden, CT · Member since 2018 · 702 posts · 501 votes
    1y

    I've used HELOCs in this way a number of times.  I'd be happy to have a conversation about how I did it and how it worked.  If interested, DM me.

    0Reply
  • Joyce Ann MagallanesBusiness Member
    Lender · NY · Member since 2025 · 531 posts · 23 votes
    1y

    Hi, Andrew! 

    A HELOC can work as leverage for a live-in flip if the numbers make sense—just watch your carrying costs. Be sure the ARV supports the extra debt and leave room for overruns. Also check with your lender that the HELOC funds can be used as a down payment; some banks treat it as borrowed funds and may adjust the terms. Running a detailed budget (purchase + reno + holding + resale costs) is key.

    [email protected]646-914-9393
    Venture Estate Group LLC525 Reviews
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    0Reply
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