HELOC to buy investment cash. What are possible exit strategy?

[Rhyna Orillaneda]

Hi all. Trying to put my financing ready. I have a primary home that has a lot of equity. Planning to use HELOC to buy cash for a property. What are some of the exit strategies to transition to long term loan?
Appreciate all your feedback.

[Matthew Kwan]

If you do cash out refinance it would allow to only get to 75% LTV around the high 7s with some points, they would still require to be 1st position. As for HELOC allows it be in 2nd position and it allows you to get up to 90% ltv for primary. However, rate would be prime + index + an additional +2% for the shock factor just to qualify, but you can draw the funds whenever you want vs cash out where you have to draw all the money after closing.

Many borrowers would keep opening lines of credit, assuming you have the equity + income to qualify, as you keep rinsing and repeating the heloc process.@Albert Bui @Carlos Valencia