28k HELOC for investing... What's your strategy?

Question

I have been able to find a credit union that will do a 28k HELOC on my investment property.. As far as investing, I have a couple of strategies in mind that involve either buy and flip (which I don't think I have enough capital for) or buy and hold (which I am leaning toward). I have been tossing around the idea that I could maybe purchase two properties with 28k, but then the down deposits would need to be like <5% which may leave me wiggle room to make minor updates and keep reserves (but the properties have to be just right). I assume the minimum payment (for the HELOC) a month won't eat much into my cash flow (if I buy and hold) if the draw period is 10 years, unless there is something I am missing.

Question: Have any of you used a HELOC close to 30K for investing? If so, what was your strategy?

**Also, could someone brief me on payments (a month) I would be looking at if my interest is 4.7% and the draw period is 10 years? Is it like a credit card, where the minimum payments stay the same every month (until the balloon payment)? This could help me better determine my buy and hold strategy.

THANKS

Question: Have any of you used a HELOC close to 30K for investing? If so, what was your strategy?

**Also, could someone brief me on payments (a month) I would be looking at if my interest is 4.7% and the draw period is 10 years? Is it like a credit card, where the minimum payments stay the same every month (until the balloon payment)? This could help me better determine my buy and hold strategy.

THANKS

Justin Phillips · Answer

@Patrick Crehan I can help you with the Payment side. For interest only, you just take your rate x balance / 12. That will give you your monthly interest cost. So $30k x 4.7% = $1410 / 12 months = $117.50/ month. And thus you see the value of a Heloc!

Patrick Crehan · Answer

@Justin Phillips

Sweet! Thank you Justin