Looking for guidance

[Timothy Loberg]

I have recently been interested in possibly buying a rental property. I have a decent amount of equity in my primary residence. I have been researching and studying different methods of going about it. One thing I feel would be my best option is a HELOC to utilize as a down payment. Is this a real option that could work for me? I have some reservations about borrowing against my home as I am the only person with an income in thr household. Can anyone give me some insight as to what the pitfalls are, positives with going this route, or just any guidance at all? Thank you.

[Nicholas L.]

@Timothy Loberg

for small multifamily, no - the process is similar.  you're looking at comps as your target.

in general though in today's market if you BRRRR something, there really isn't any cash flow - you're taking out a loan at the max ARV of the property at a higher interest rate. so if you're showing "high cash flow" post refinance, something may be off in your calculations.