All Forum Posts by: Brandon Spurlock

Looking to get my first property in the coming months, and a HELOC is my best financing option. Looking for a little advice on how to choose a HELOC based on making payments.

I can get a $70k LOC with a 95% LTV heloc from a local credit union. Payments at 1% would be $700/month. That seems obviously too high to lump into future rental income, so I'd want to pay that heloc back ASAP (for that reason, I'm mainly considering a BRRRR or buy and flip). Are there creative ways to make HELOC payments that are too high to lump into a deal? Can you use money from a HELOC to make those payments? For example, can I take out $70k, but set aside $8400 (and only use $61,600 on the property) to make the first 12 months of payments until I can flip and sell or refi? I also have $10k sitting aside, earmarked for investing. Would it be (un)wise to use that $10k to make the payments for up to a year?

Another option would be to take a 90% LTV loan from a different credit union that is interest-only. Much more affordable payments and I could likely lump those into the deal.

Either way, I'd be wanting to pay the LOC back within 6-12 months to free that money up and move onto the next deal.

Thanks for any thoughts. I'm a newbie, so happy to receive any thumbs up, thumbs down, and/or suggestions that will move me forward.

Welcome Nick! I'm newer to BP too, living in Richmond, VA. Seems to be a great market down here - looking to get my first property in the near future. Maybe we'll cross paths!

Hey all! Aspiring investor from Richmond, VA. I have been listening to BP for a few months, and just now beginning to read/engage on the forums. I currently reside with my family in our primary residence, and have been consuming podcasts and books, with the goal of buying our first investment property by the end of the year, if not sooner. Likely leaning on funding deals with a HELOC on our primary, and I'm still mulling the best strategy to use HELOC funds - leaning towards BRRRR or buy and flip, to keep the funds freed up.

Excited to engage with you all, learn, and contribute once I've got some experiences to share!