Hard Money VS HELOC VS Both for BRRRR
Please help me think through what I might be missing and any suggestions of other creative ideas.
Purchasing a BRRRR property in price range of $50K-100K with $20-50K of rehab needed. (70K-150K ALL IN)
Currently have:
- HELOC against Primary for 60K @ 4.125% and another 40K liquid for the investment. = $100K
- interest free credit cards for 21 months with 0 interest = $75K
My thought process was to buy with HELOC and cash and rehab with 0% interest credit cards.
To think long term and create a process that will allow me to run a BRRRR repeatedly, should I go the route of HELOC at 4.125% and rehab with credit cards, OR use $75,000 of hard money at 7.125% (lending home or RCM) and fund the remaining amount with HELOC and cash?
Any advantages to going the hard money route or just causing myself a headache and costing money? I figured eventually I will be going the hard money or private money route but should I start from beginning doing this?