Heloc used for a Brrrr deal

Heloc used for a Brrrr deal

David ArehartPro Member
New to Real Estate · NE · Member since 2020 · 14 posts · 0 votes

Very new to real estate investing and currently in the process of educating myself right now through BP. Just had a quick question on the Brrrr process when using a Heloc to fund the down payment and rehab costs. When analyzing the deal should I include the cost of monthly payments for the Heloc towards the expenses portion? I assume yes but want to make sure I understand this process. 

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  • Brad HammondBusiness Member
    Real Estate Agent · Portland, OR · Member since 2016 · 1k+ posts · 605 votes
    5y

    Hey @David Arehart, you are correct, you want to include the cost of the loan in your analysis.  The good part is that your minimum loan payment should go down each month as you pay down the loan. 

  • David ArehartPro Member
    OP
    New to Real Estate · NE · Member since 2020 · 14 posts · 0 votes
    5y

    Perfect! Thank you Brad Hammond!

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