Both strategies you mentioned have their perks:Pulling all the cash out gives you a big chunk to put down on a multifamily purchase right away.Using a LOC and the BRRR method keeps your funds recycling, letting you potentially scale faster by doing multiple projects in a row.If you want to grow quicker and don’t mind juggling rehab work, BRRR with a LOC can be a game-changer.

That’s called equity drag, and it’s why many investors refinance to recycle equity into more deals.Your current HELOC at 9% is expensive, especially if it's interest only.

We recycled capital.

Definitely something to review with a CPA who knows real estate.Capital Recycling with HELOCs & Infinite BankingInstead of letting equity sit idle, some folks are using HELOCs or cash value life insurance policies to move capital more efficiently between deals.

We just want to maximize leverage, move fast, and recycle capital.If you've done similar deals or know hard/private lenders comfortable with this kind of setup, we’d love recommendations.

I know the latter is like a CD, yet higher, but great hedge to taper your entry into RE again on the event the rehab takes time, market turns bearish short term yet define your directional position.I've done this in Nashville, among other areas, and my cost basis is so low and my capital has recycled.

You can keep on recycling that money and keep on scaling!

Quote from @Shayan Sameer: Tapping into the equity is always great when it comes to recycling money quickly as you would a flip.

All I did was file an amendment to change the name of the LLC, but essentially it is still the same entity.On tax side, it is totally fine, and many people recycle their LLC for a different business.On legal side, look into two potential issues:- state charter that specifies the nature of the LLC's business.

It is also possible that this contractor is milking you because he is local and you are across the country in a rich area.