Advice for a 1st time investor

[Joshua Bailey]

My plan is to take a HELOC out for a down payment of 19k on a 76k fourplex. Can I do a cash out refinance a year later to pay off my HELOC and just rinse and repeat if I wanted to. I heard this on one of the podcast, but it wasn't discussed in length.

[Greg Scott]

Well, yes, with some caveats to what you posted.

First of all, you shouldn't have to wait a year.  You can usually do a cash-out refi after 6 months.

But, you should know that full, un-tapped amount of the HELOC counts against your debt-to-income ratio. If your finances are not exceptionally healthy, you might not qualify for the mortgage after taking out a HELOC. Talk to your mortgage professional.