If Using Heloc with BRRR (Not Refi) • Does anyone know- if investment costs you - (example) cash $75K(COE, Deposits,Rehab,Carrying..) and after Rehab you HEloC back $60K • How should you adjust your spread sheet-to reflect ROI ? • Does this strategy affect IRR as well? Any 1 with insight (for the math challenged) - most appreciated.

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 !

Heloc is more for short term financing. I would not use it for the refinance part. You can use it for the buy and rehab piece.

For HELOC i believe its ((ARV)-(Loan Payoff))*80% for the spreadsheet formula ROI = (Current Value of Investment - Cost of Investment) / Cost of Investment

Updated almost 7 years ago on 06/28/2019. Most recent reply

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Dahlia FrydmanPoster

Kensington Ca

Innovative Strategies

Evaluation of : BRRR + Heloc Instead of Refi?

Dahlia FrydmanPoster

Kensington Ca

Posted June 28, 2019 16:43

If Using Heloc with BRRR (Not Refi)

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

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

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