Updated almost 6 years ago on . Most recent reply
How to repay the initial HELOC or cash out?
Hi! This is my first post and I'm new to listening to the podcast and my mind is blown! I was listening to episode 270 and at about 21 minutes, Amy talks about how she did a cash out refi on her primary home and bought a new property with it. The host (can't remember who was talking at the time) said that his parents did HELOC on their primary, bought a new property with it, repeat (I'm guessing the BRRR method??)
Anyway, my hang up is...how do you pay off the HELOC (or cash out) you take from your primary home if you keep putting the money from the next house into yet the next house? Use rental income? I'm just imagining this huge HELOC payment/loan that has to be paid off in 10 years -- on top of what our regular mortgage payment is.
Just wondering how others do this? thanks so much!