Hello guys quick question, if i use a Heloc to finance the BRRR strategy, is it true some helocs do NOT allow you to use the funds for rehab or closings costs, and if they do allow it, is there a waiting period for refinancing out of the loan to move onto the next one? like 6-8 months? i thought a heloc was treated just like cash, i keep reading mixed replies on the forums, im confused =(
thanks so much all!
@Oscar Chirinos a HELOC acts just like your checking account. You literally get a check which you can deposit into an account or use to make a purchase. I recently used my HELOC to purchase a six unit deal in Cicero, IL, and it was as easy as having cash in the bank. I am not sure who told you that you can't use them for rehabs or closings??
@Oscar Chirinos . I just want to keep tabs on this discussion because I want to know about a 6-8 month waiting period to refinance. I have purchased a property in June and have to do work but then want to cash out refinance to recoup my rehab costs and pay the original loan off so I can have it all under one, but the same as you, I have heard many differing answers such as I need to own for 6 months before I can refinance or such.
Thank you gentlemen yes i am just waiting to find out about the refi waiting period at this point =)
the 6 (or 12) month refi period is decided by the bank/credit union that issues the loan. Your next bit of homework is to research lenders, find out their requirements, rates and fees and pick one to work with.
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