How much HELOC should I get?

1 Reply

Looking for some financing insight. I've got equity in my home and can access up to a $350k HELOC. My idea is to use the HELOC to make cash offers for single family, and up to 4 unit multis, then BRRR. I'll then pay back the HELOC 80-100% with a cash out refinance on a 30 year fixed personal residential loan, then do it again on the next property.

I'm in the final stages of the HELOC but I'm trying to decide between getting the maximum HELOC limit ($350k) with prime + .85% APR or stay with 70% LTV ($250k) and get a better prime - .25% APR. Considering my interest in getting traditional financing on the properties, is it better to have access to a bigger HELOC and more capital up front or keep LTV lower to get better rates and have a better DTI for future refinancing of the investment properties. Any insight experts? Thanks! Tom

It depends on how many homes you might want to do ay any given time. If you see yourself staying under $250k and depending on the all-in price you could do 1-2 homes at the same time, refi and then do it all over again.

Personally I would rather have a higher amount to access.

Good luck!