Refi Vs Heloc BRRRRR Questions

[Ryan Dossey]

I'm honestly not sure how many R's go in there so I just keep hitting R till it looks good. 

A lot of people talk about taking out a Heloc after rehab to get their cash back out. Assuming I own a property free and clear I was under the impression I had to wait 6 months to go off of the appraised value? Is that just with a refi?

[Matt Holmer]

Take a look at this recent thread, particularly the comments by Joe Villeneuve

 Click here

To paraphrase what Joe said (in-artfully at best)

In order to do a cash out refi into a conventional loan (i.e. fixed rate, longer term) you have to wait 6-12 months for the "seasoning period". However, once the property rehab is completed, you should be able to immediately take a HELOC at 70% of the ARV. This way your cash is now ready to be used for another property.

Once the seasoning period has elapsed, then you do a cash out refi, pay off the HELOC and lock into a long term conventional loan with a loan interest rate.