HELOC and Cashout Refi SIMUTANIOUSLY

3 Replies

Hi guys...I'm not sure if this a credit question or a real estate question but I was wondering if it's a good move to pursue a HELOC and a cash out refinance at the same time?

I'm in the process of doing a cash out refinance on one of my rental properties. The purpose of the cash out is to use the cash to buy more properties (BRRRR) but I can only take out $15k....in your experience is that enough to BRRRR?

If $15k is not enough to BRRRR then I would need to do a HELOC on another rental property also.....So that's where my question comes in.

Should I wait to close on the refinance before I start the HELOC?

Is it ok to get both processes going at the same time? 

The lender will normally loan you 75% of the equity, so if you did both and got $30K, will you be able to capitalize the $30K to acquire another property that will justify the new debt load? It is OK to move slower and find the right deal rather than borrowing all you can and buying anything you can find.