Investor · Miami, FL · Member since 2017 · 76 posts · 37 votes
Hey bigger pockets happy holidays to you all I really need some advice here ! So it’s been 3 years since I brought my first duplex @415k its now build up equity and is worth over 540k so I have equity in it a refinance doesn’t make sense because I’m locked in at a low rate but I do t want to wait until rates drop to get back in the market I’m wondering should I tap into that equity via private money heloc and use about 30-50k to get into a flip deal the lender is giving 2 years to pay back the heloc ! Would love to hear from you guys !? Thank you in advance
When that comparison is done, don't forget that the hard money lender wants interest in most cases from the start on the full amount while a HELOC only requires payments on what you're actually using, so your project plan and timeline is very important.
Rental Property Investor · Miami · Member since 2022 · 247 posts · 75 votes
2y
being there done that.
I love Heloc put all your income there; use credit card right get a 2% cash back that is a 24% a year return plus the interest you are saving in the Heloc. Keep putting a steady payment in the heloc to run down the principal to have money for you next deal.
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