What is your strategy for paying back the HELOC after using it to buy rental properties? I recently secured about 200k from a HELOC with about 5.5 % interest rate. I have been studying the buy and hold strategy so far and open to new suggestions.
I am stuck on how I would repay back my HELOC, using a buy and hold strategy is going to take some time and based on my research, it is not a good idea to have a HELOC for years without a plan on paying it off in a year or two.
That is what's holding me back from investing in the real estate market nowadays. Can you share your strategies? BRRR is another way, but I also have to deal with finding a reliable contractor and making a decent profit after selling.
Investor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
3y
You might not have to do a total brrrr. You could do a refinance without a remodel. It sounds like you might be nervous about a remodel and that's understandable if getting started so that's the only reason I suggest that. If you are comfortable waiting a year or two to refi, it could be the property went up enough in appreciation to pay off the HELOC, not to mention the cash flow should've helped chip away.