Anyone ever took out a HELOC to cover the down payment on a HML?

[Patrick Philip]

Have you ever known this strategy to be successful? This way, I could be flipping million dollar houses with greater profit margins and less competition from the amateurs.

[Charlie DiLisio]

Yes I do use my HELOC for whatever I need it for to make money. I do not worry about losing my house for two reasons. The interest rate is low and I can make the payment unless something catastrophic happens in which case that is out of my control. I have done many re-habs and creative financing and if you buy right it's very difficult to lose money with so many exit strategy's out there. If you wait until you have all cash you could be waiting a long time to cash in. I wish you the best in the future and I say go for it but never use loans for bread and butter items only to make money! All the best to you! Cheers