Starting out with HELOC

3 Replies

Working on getting approx. 75K in HELOC money. I have a full time job. I'm in the Kansas City market. Interested in duplexes, 3s or 4s in my area, in a way I can use BRRRR to develop cash flow, and acquire 10-20 properties over the next 3-5 years. Considering house-hacking as well. Can I get financing since I'll have a primary mortgage and a HELOC already? Will my debt to Income ratio be too high? Or will these be cash deals or private or hard money to get the first property? No problem living in the property, even though the rest of my family lives in our primary residence? Is this a reasonable starting (and scalable) strategy, or should I shift my thinking? Does anyone have any other creative suggestions? Any pitfalls I'm not considering?

Thank you.

The financing will depend on the bank and what type of loan they are making. If you are wanting to BRRR, then you can use your heloc to purchase and rehab a property or a combination of that and hard money to find a duplex.

I work with a bank that will Cash out refinance once a tenant is placed and will lend based off of the asset and income production, not based of my debt to income ratio. But you have to find the right team members to scale the business. Let me know if you have additional questions as this strategy is how I was able to secure my first 10 deals using my first HELOC.

Thanks, Joshua.  I'm sure I will have additional questions.

Trying to buy as an owner occupant, leaving your family behind to live under a separate roof, strains the limits of credulity. Cannot endorse that approach.

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