HELOC and Line of Credit

[Julian A Beeks]

Hi,

So I've been doing more research lately on financing, as I start to look at making offers soon. I have enough cash for a down payment on a 50K SFH, but not enough to rehab the property. I was planning on using a personal line of credit to fund my rehab as the interest rates are lower and I feel more comfortable going with a bank for the 1st investment. My question is how do payments work on a personal line of credit. For instance if I use 30K for the rehab at 5% interest, that would $1500. Would that be charged monthly or is there a grace period before I have to start paying that off?