Future implications of using BRRRR without one of the R's
I've scoured the forums looking for an answer to this, and it might be a "duh" moment but I figured I would ask anyways.
A short backstory: My wife and I have just received a HELOC on our primary residence and are on our way to purchasing our first multi-family property (using the HELOC for our down payment). We got 90% LTV, totaling almost $140k in available funds.
My question is this: If I purchase a property that has already been rehabbed and is 100% occupied with long-term tenants, what will this look like in a year when I decide to refinance it? Should I expect to get enough to pay back the HELOC? What would the typical refinance for this look like? I don't think I will pay interest only on the HELOC, I would prefer to pay principle and interest if that makes a difference.
Thanks in advance!