Tips on Using a HELOC to Purchase Investment

[Julian Addy]

I purchased a single family home from a good friend of mine in the middle of the year this year. I ran comps and I should have enough for 15% down on an investment property based on the equity that I have on the house. I plan to save up to 5-10% of the rest of the down payment in order to have enough to put down. 

My goal is to BRRRR a 3 family in the next 6 months using a hard money loan and refinancing.

Do you have any tips or mistakes to avoid when doing a HELOC on your primary residence? Or your first BRRRR?

Any advice would be helpful!

Thanks. 

Julian Addy

[Michael Wallimann]

@Julian Addy If you already have 15% and you are able to save the additional 5-10% that you would need for a downpayment I would suggest that you just use your own money to do your BRRRR instead of using hard money. Hard money can be great but if this is your first BRRRR it might be safer to play with your own money because we all know there are just things you don't know that you don't know. HELOCS are great for "lower" interest rates and the fact that you generally only pay interest only while you have the money pulled out. If you wind up doing your BRRRR right you'll be good to pull your money back out and continue to roll it into the next deal. That's just a couple of my quick thoughts. Best of luck to you!