Help organizing heloc, mom loan, and brrrr strategy please
Looking for advice, suggestions, and tips on how to pay for two properties I am currently in contract on. I am using my HELOC and Bank of Mom for both properties from one seller.
Pickering Ln: SFH purchase price $125,000
Watterson St: Duplex purchase price $100,000
Heloc contribution is $100,000 @ 3.5% interest only
Bank of Mom is $125,000 @ 3%
One question I have is how to draw up "BOM" money. Should I write her up as a 30 yr schedule with a three year balloon mortgage or a 30 yr schedule interest only with a three year balloon?
Also on my HELOC does it make sense to just pay the interest only the first six months until I cash out refi?
I have never done BRRRR and so far have been able to buy property using my own cash and pay 100% every time. This is my first time scaling and I am confused on why and how to navigate this transaction as I never used debt prior. Also these property values should be close to $300,000 so I may be able to get cash over actual purchase price...
I am thinking that I would like to get the HELOC money back ASAP so I can re-use that capital for the next opportunity..