HELOC Advice within BRRRR strategy

[Micah Watson]

Hey guys,

I applied for a HELOC against my one and only rental property(yes, many banks will do HELOCs on investment property). I shopped around for about a week analyzing rates and terms. This particular credit union had the best terms for my purposes, because I plan to put the money back about 4 months after borrowing it, so the interest rate is very predictable in that window.

The problem is that the lender is saying my DTI(debt to income) ratio prohibits her from lending more than $7600 because the interest rate cap is crazy high(16% maybe?). My DTI is about 33% and about 26% when I factor 75% of my rental income into the equation.

Has anyone else had similar issues with HELOCs? I love the idea of a HELOC because I can borrow and replace the money over and over without reapplying each time.