Evaluation of : BRRR + Heloc Instead of Refi?

3 Replies

If Using Heloc with BRRR (Not Refi)

  1. Does anyone know- if investment costs you - (example) cash $75K(COE, Deposits,Rehab,Carrying..) and after Rehab you HEloC back $60K
  2. How should you adjust your spread sheet-to reflect ROI ?
  3. Does this strategy affect IRR as well?

Any 1 with insight (for the math challenged) - most appreciated.

For HELOC i believe its ((ARV)-(Loan Payoff))*80% for the spreadsheet formula

ROI = (Current Value of Investment - Cost of Investment) / Cost of Investment

I did heloc, bought the next property and then paid off heloc when refinancing

It all equaled out in the end so not sure if I should’ve just started off with the refi, but the line of credit was nice because I didn’t know the exact amount I would need at the time

Either way it worked out best of luck !