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

[Andrew Guzman]

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. 

[Kerlous Tadres]

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.