HELOC payment structure

[Michael Pauley]

Hello all,

I'm fairly new here and this is my first post. I own one rental property and am looking to get another shortly. I was able to find a lender too to give me a heloc on my rental property and I plan to use it for at least 2 down payments on additional properties. With that being said, when calculating cash flow, how do you factor in HELOC repayment? Right now I'm factoring in the mortgage payment, HOA, insurance, taxes, vacancy, maintenance, and property management. Doing roughly 10% for vacancy, maintenance, and property management. When I think about factoring in the HELOC payment, I'm not sure which way to approach it. The draw period is 10 years and my interest is 4.5%. Do I just factor in the interest only payments? And after the 10 years, just adjust? Or do I structure in a repayment plan with part of the cash flow towards principal? Any assistance is appreciated. Thanks for your time.