Bought 5 units on HELOC am I in trouble?

[Benjamin Orozco]

For starters I have a HELOC through my credit union for 130,000

Bought a triplex with a partner paid my down payment of 55,000 in February 2020

Bought a Single family house in kansas cash and paid 34,000 and needs 22,000 in rehab so 66,000 total in March 2020

Bought another single family house cash through a wholesaler with a partner for 33,000 in kansas, 10,000 in rehab My total will be 21,500 with rehab cost.

Both houses will be BRRRR deals

I pretty much maxed out my HELOC

I have about 12,000 in reserves

My home I live in is worthy currently 555,000 and I owe 258,000 on it

Will the credit union call my HELOC due. Freeze it, ask to pay cash on the spot or covert it to a HEL.

I have considered is they do to refinance my current home and blend the HELOC and my current loan together to form one loan.

Also have considered borrowing private money to pay HELOC down so they don't freeze it or call it due.

Any help would Be greatly appreciated!

I know I got way over leveraged way too quickly. I am now thinking of exit strategies to secure my investments I would really like to keep all 5 units which is my plan and I know I can retain them but I want the best plan of action. Thank you guys

[Patricia Steiner]

My take on it is you've been busy! Congrats on your acquisitions. The HELOC was extended to you based on your creditworthiness and equity. You can use it how you see fit. The bank isn't watching your credit line. As long as you make your payments, you'll be under the radar. You actually did what most large corporations did as the virus news became prevalent...they maxed out their credit lines. You don't need/want to pay for high-rate money to pay down the credit line. That's not a wealth building strategy.

How to pay for the rehabs is the real question, right? Consider the rehabs in a different way: what absolutely has to be done now - and what is cosmetic and can wait. Can your partner take a larger ownership share and do the one SFH rehab on his own financially? Will the triplex spin off any cash that could be a contributor? I don't know enough about the rehabs to offer anything tangible but sometimes it just comes down to "do what you can now, leave what you can't until you can."

Again, congrats on the acquisitions. Spend some time on the rehabs - prioritizing and see if there is a way to give you some breathing space/time.