Updated over 6 years ago on . Most recent reply
HELOC vs. Cash Our Refi
Hi all! Newbie here (7 years of experience of running real estate investment fund but first deal of my own). I am ready to buy my first rental using BRRRR. I am pretty much clear on the B and first two of Rs. My question relates to the 3rd R, which is "Refinance". Property will be in LLC due to certain restrictions that apply on a family level so I am limited to everything that is non Fannie/Freddie conforming. I am deciding between non-owner occupied HELOC or commercial refi loan. I am inclining towards HELOC since 1) I see certain credit unions offer up to 80% to 90% of LTV; 2) I will not immediately need all amount of available line so I may make draws as needed. Also tempted (very much) to use % only option that comes with many HELOCs. Any advice against using non-owner occupied HELOC to drag money out of the property? P.S. Will be buying all cash. TIA for your opinions.