Refinancing a HELOC

[Brian Jones]

I have been working with my parents who have a HELOC on their first house. The goal was to use this for flipping. We have done one flip so far but deals are few and far between. My question is whether or not there is a way to purchase a multifamily rental with the HELOC and then in some way refinancing to conventional but in my name as to avoid the need for a down payment. Any advise would be greatly appreciated I can provide more details if need be. Thank you, Brian

[Edward B.]

@Brian Jones,

This is absolutely possible and, in fact, encouraged. It is somewhat of a twist on the BRRRR strategy, Buy/Renovate/Rent/Refinance/Repeat. It may be a little more difficult in execution though. I would develop a relationship with some lenders now in order to understand what their requirements are going to be and ensure you will be able to meet them. They likely will want to see some seasoning on the investment before they will lend so be prepared for that and there will be LTV, DSC, and personal credit requirements that you will have to meet.

Ed