BRRRR Refinance on a Condo

1 Reply

I found a Condo that will Cashflow pretty well using HELOC funds as a downpayment. I went with a HELOC (as opposed to a Home Equity Loan) so I had money available that I wasn't paying on each month. However, the financing on the HELOC bites into my cash flow. I'm currently looking into a Condo from Craigslist which appears undervalued. I've read that financing can be difficult when attempting to finance a Condo w/ a traditional 30 year mortgage.

I'm using PenFed for my HELOC, which has been an excellent experience. I'm wondering if anyone has ever done BRRRR on a Condo using Heloc for a downpayment on a tradition mortgage, then refinancing to get the HELOC money back out of the deal. I had originally planned on using this method for single/multi families. Not sure if it is still an option now that I'm considering a Condo.

Thoughts? Experiences?

Haven't used a HELOC, but we have done a BRRRR refinance on condos before (although we usually do them in packages with other houses). Some banks don't like condos and the HOA can screw up the cash flow, but there are plenty of banks that will do it.