Use HELOC to BRRRR questions

[C-Dell J.]

Hello good people! I've read and researched a lot on using BRRRR strategy. But 1 part I seem to not hear or miss is, I understand how to use refi/cash out to buy the next property but what happens to the current property after cashing out/refi?🤔

1. How do I pay off rentals faster than 30 years if I’m taking out (cash out refi) all the equity? I assumed people generally rely on aggressive rental cash flow.

2. How to or can I refi HELOC (in order to pay it off) if it's not 25% or enough equity?

[Ley Nezifort]

@C-Dell J. Hi there, the first question I’d ask you is why do you want to pay it faster than 30 years while you can re-invest the cash flow into more deals ?

But to answer your original question, after the refi you’d then have a mortgage which your rental income is going to take care of. Anything left from the rental income after mortgage and operational expenses will just be cash flow. Now if you really want to accelerate the mortgage payments, you can somewhat kill some of your cash flow by paying more than the mortgage amount on a monthly. But I’d be sure to have a good reason why I’d do that.