Refi a BRRR? or Paydown the HELOC??

[Sean McElligott]

I love the BRRR strategy..however im stuck...if i take a HELOC out to buy a $140,000 property cash, do I refinance and get back about $98,000 (70%) to pay back SOME of the HELOC or do I keep the property paid off and pay back the HELOC monthly with rental income? I'm confused where to keep the debt: in the houses with a refi or with a HELOC...I would def refi if I was doing a HELOC to get the 20% down payment but im not sure what to do when you use the HELOC to pay off the house up front..

[Brent Coombs]

Originally posted by @Sean McElligott:

Thanks for the info Chris..I think my issue is that im not getting a good enough deal on the rehab to begin with.

Yep. BRRRR requires buying from highly motivated (read: desperate for cash, will give sufficient discount) sellers!...