Heloc has variable interest with monthly payments of about $1200. Total balance is at $168,000. Debating whether to pay this off or buying first rental. I appreciate your thoughts and ideas in advance. Thank you!
Hey Andre! Are you saying you owe 168k on a Heloc and have no mortgage on your property? How long would it take you to pay off the 168k? What price range of homes are you looking to buy and where?
@Marquez Griffin yes we have a mortgage, looking to buy in Memphis, Indy ( Midwest market around 85k-110k) ... pay it off heloc within 24 months
Hmm. Personally if I found a really great deal I would go for it if it is cash flow positive and could help boost you towards saving more or paying the HELOC more quickly. However, my gut is telling me that if you pay off the HELOC 1st then invest you'd be better of because then you could get a HELOC again once it's payed off, buy a property, BRRRR it, pull the money out of the rental you just bought to pay off your primary home HELOC then repeat. I will tell you that I do own my own property, I don't have any rentals yet, but I am working towards getting a little more equity in my home to do a HELOC and I'm going with the BRRR strategy. I hope that helped!
@Marquez Griffin thank you very much , yes it helped a lot