BRRRR Cash Out Refi-Pay off HELOC

[Travis Juntti]

I've been searching for a potential BRRRR property in Metro Detroit. My buy option would be my HELOC which is on our primary residence. Currently it is at roughly 87k and 90% LTV. They offer up to 100% LTV which I'm going for now to have that extra cash available if necessary. If I recall the difference would be 4.25% @ 100% instead of 3.25 @ 90%, interest only.

My question is, will I run into issues trying to do a cash out refinance if I purchased a property with HELOC and I used up most of the 90 or 100% available to me? I'm thinking I would since I have the mortgage on personal and 90-100% used in HELOC. Could be leveraged too high? I suppose this also depends greatly on income coming in. I am a full time Realtor with more than 2 years tax returns.

Any thoughts? Should I not go for the 100% LTV? I do have cash available to use for rehab

[Travis Biziorek]

@Travis Juntti I've had my $138k HELOC maxed out, 401k loans out on my and my wife's accounts, personal loan ($50k)... spent. Still managed to get refinances done. It really just depends on how much debt you can carry.

FWIW, Huntington denied me on three refi’s I was trying to do at once. That was fun. But I ended up getting them done through my usual guy who’s a badass. So your mortgage person matters.