Rental Property Investor · UT (utah) · Member since 2019 · 7 posts · 0 votes
First house was a success! I have about $60k equity on a HELOC, avg house price in my market is $300k+ should I use it as a down payment for another rental or couple it with hard money and flip a few houses to build up capital?
@Kalin Johnson agreed you definitely don't want to tie up your funds from a HELOC for a long-term buy and hold. Then you will be paying interest on the HELOC and mortgage with no real prospect to get those HELOC funds back to continue on. Short-term is definitely the way to go so you can free up that capital again with a BRRRR or flip and make a good return or be in a rental with no money tied up. Get your HELOC funds back and move on to the next project. Whatever you find if you buy it right that will make it easier to continue on with the next project
I borrowed just what I needed . 175k on a HELOC for154k triplex last summer. I'll have about 180k in it before I send it to refi.I've kept 2units occupied while the 3rd unit has been in renovation. About to turn this one over to the last tenant. Now is the time for applying, but there are way too many people out there trying to hand me money. Any suggestions are welcomed. Love to get my funds back ,and play it again.