HELOC: Use for multiple purchases or pay off quickly

[Aymen Mandil]

Hey BP community! My name is Aymen and I am super excited to be a part of this community and look forward to learning and growing with everyone! Thank you in advance for taking the time to read my post!

My goal with this post is to get some opinions from more experienced individuals that have been on this journey before. This will be my 1st time genuinely pursuing any real estate ventures. I would like to eventually step away from my 9-5 and pursue real estate investing full time.

Here is my situation.

I currently own a house I am renting out and cash flows roughly $400/month. I sat down with my lender I am financing the house through and they mentioned I would be able to pull out a $100k line of equity. I have 750-760 credit score and my debt to ratio is fairly low. My lender mentioned I have several options available.

Here is what I’m thinking. (Which I honestly don’t know if it’s doable)

1- Applying for that line of credit.

2- Purchasing a single family home or multi-family property at 75% ARV. (Not sure what loan option to pick, etc...)

3- Using the line of credit to BRRRR. (At the same time I am pursuing step 2)

4- Not sure if I should pay off the line of equity or keep the money out and make the monthly payments and keeping BRRRRing that’s where I lack the knowledge to make a quality decision. :/

Hope I am not asking too much and if there are any questions you have please let me know!