Advice - Using HELOC to BRRRR

[Austin Powell]

Hey BP,

So I've established my first rental property criteria and now to the fun part - financing! My goal is to use a HELOC (access to roughly 100k) to BRRRR my first deal. I have great credit but the pandemic basically put my main source of income on hold since March. A decent SFR will run about 100-150k not including rehabs. Looking for any tips on creative ways to finance. Is it possible to use HELOC for the down payment and rehab, get it rented and then refi to payback the line of credit? This is what makes the most sense to me but I'm open to suggestions. Also if any of you have first hand experience in a similar situation you'd like to share I'd greatly appreciate it!

[Nicole Heasley Beitenman]

Originally posted by @Austin Powell:

@Nicole Heasley Good point! It’s a waiting game with the pandemic. Once people are permitted to gather, income should bounce back fairly quickly. Interesting to see show the banks will view the gap 🤔

"Where there's a will, there's a way" is a very appropriate cliché for REI. If a bank doesn't like the gap, find one that will work with you based on the merits of the property.