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Rehabbing & House Flipping

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Jonny Morris
  • Rental Property Investor
  • Bozeman, MT
10
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60
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BRRRR strategy with HELOC advise please

Jonny Morris
  • Rental Property Investor
  • Bozeman, MT
Posted Jan 15 2018, 19:04
Pen Fed vs US Bank HELOC Shopping for HELOC’s I feel I have narrowed my focus from many, to a couple of options. With so many variables, I would love some feedback from people who have a HELOC. Pen Fed currently offer a HELOC at: 4.5% There is also an interesting 5 year offer with a rate of 3.75%, 15 year term (2% due of balance each month). US Bank offer a higher rate approx. 5.80% (as of today), no fees if you are a platinum member (must have at least 25k balance to qualify) They also offered a 5 year fixed rate of 5.19%. I would be using this HELOC to BRRRR property. So my question is basically, which is better for me? I don't like the idea of paying back 2% of the loan per month since the goal is to rehab with a higher ARV and obtain a conventional loan, paying back the HELOC in full. Any BRRRR pro’s talk me through the best use of a HELOC? Should I just elect to pay interest and then when higher ARV of property appraised and loan issued, pay back in full? Thank you for your constructive thoughts BP!

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