BRRRR: How HELOC affects DTI when Refinancing

[Grace Ronquillo]

I am planning to use the HELOC on my primary residence to implement the BRRRR strategy. Specifically, I plan to buy a small multifamily (2-4 units) and rehab it with cash I draw from the HELOC. Will the interest payments on the HELOC affect my DTI when it comes time to refinance? I am planning to completely pay off the HELOC with the proceeds from the refinance.

Is there a way to structure the initial purchase or refinance so that this will not be an issue?

Thanks in advance for your insights and suggestions!

Grace