The " Re-Use " of a 20 Year Term HELOC ??

[Michael Dunn]

Good Afternoon,

I need some help in Understanding my options regarding a HELOC that I just got approved for , and am set to sign the Papers for this coming Monday

The HELOC is for 20 years and is a $20,000 Loan ( the First 10 years is Interest Only and Last 10 years is when the Payments to payoff the Principal kicks in )

I want to ask and see if my Future use with this HELOC makes sense and or can be done .............

I want to use this Line of Credit for the DownPayment  (  20%  -  25%  ) /Rehab/Closing Costs/Pre-Paids for Each new Rental Property that I purchase and then Refinance into an Investment Property 

I Won't need the Full $20,000 from the HELOC each time to use for the DownPayment/Rehab/Closing Costs/Pre-Paids for Each Rental, as i plan to use some of the Cash that I get from each Rental, when I refinance them

My main Question is:

If I use this HELOC ONCE per year for the Costs it will take for Each Rental ( DownPayment ( 20% - 25% ) /Rehab/Closing Costs/Pre-Paids ) ..... I'm assuming I'll need in Cash on average ....... $33,000 per Rental ( This assumes an Average Purchase Price for the Properties of $75,000 )

Will I be able to Re-use this same $20,000 from the HELOC over and over again for each New Rental , so long as when I go to Refinance each Property , I make sure that I Pay-Off the amount borrowed from using the HELOC ( along with the Interest Payments ) .

I just want to make sure I understand the dynamics and the way in which ELOCs work, as I'm signing on one next Monday and am hoping I can use it for each New Rental ...... so long as I " Pay-Off" the amount of the $20,000 from the HELOC that I use/borrow on each Rental

Thanks so much for the help and insight