How to invest 140k from HELOC.

[Matt Smith]

I have 140k on a HELOC, and I'm wanting to know the best route to take to invest it. I currently have an airbnb in the Tampa Bay area which is performing well. I also bought a new primary residence last year and have been house hacking it. The plan for that is either rent out my room or convert it to a sober living facility. Either option would cash flow around $300/m. It's time now for me to move onto the next property. I'm learning about BRRRR strategy right now, and would love to utilize it, however dont want to burn all my capital on one property. I'm also open to another house hack. I currently also wholesale in my market and am looking for deals on my days off from my W2. Ultimately, I want to quit my job (of course), move to a new area and focus on REI. What is the best route to take now that it is time for me to move onto my next property? Thanks

[Joseph Stern]

Hey Matt, when it comes to HELOC's the monthly interest will start to eat up profits after a while. So my recommendation is you want to use a HELOC for situations when you can pay the balance back quickly. For example, if you are evaluating a flip that you know you can turn around in 3-4 months or a BRRRR (value add and refinance) and you run the numbers and even with the HELOC interest you will still make a good profit, in my opinion this is the best use of that line of credit. When you get tied up in a project that you used a HELOC for that ends up taking 9-12 months, and you can't pay it back, that is when the interest will really start adding up and ruin the project. There are many ways to use this based on your own financial situation but from the sounds of it, using this 140k HELOC on BRRRR's repeatedly can be a great way to grow your portfolio and can keep recycling the money. The cash flow can help you quit your W2 or if you start flipping and wholesaling enough to replace that salary, that is a great option as well.

[Jacob Sherman]

Ever consider going into the fix and flip market ?