HELOC ....and how to " Roll " into loan, or better yet, How to...

[Michael Dunn]

Pay the HELOC off in it's entirety , via doing a Cash-Out refinance

I currently Have a $20,000 HELOC on my Primary ( opened it , as of March of this Year )

I have $13,000 left , and am planning to use the remaining $13,000 for the Downpayment on an Investment Property ( at 15% down ) in the  $50,000 - $60,000 range , with around $4,000 - $6,000 left over for repairs and Upgrades  ( me doing most of the work/labor )

My 2 questions are:

1. If I were to get a Loan for an Investment property in say the next few months, and a Lender sees I have this $20,000 HELOC ( $7,000 being Owed back on it ) with a $40 a month Minimum payment ( for now ..... first 5 years of the loan ) , how will they intere

t this HELOC / Monthly Payment I have on this HELOC , in there calculations of my DTI ? Will they use the minimum payment of $40 in their calculations in regards to my DTI ?

2. With the Purchase of my Next Property , I want to get " Out from Under " Having this HELOC and thus " Free Up " the full $20,000 , to use for the DownPayment on the Next Rental, and then do the same for the Next rental, etc. ( i realize I will likely pay a Pre-Payoff penalty )

So will I end up using any Money I get each time that I go to do a Cash-Out refi. , and use this money to Pay off what I owe on the HELOC , thus Freeing up this HELOC to use on the next property ?

Does a HELOC work in that , each time I payoff the balance owed in full ( during the 5 year " Minimum Payment " stage , that it recalculates and gives me another New HELOC that I'll be starting out with , or do I keep my Current HELOC as it stands with it's current terms, and JUST MAKE SURE hat by the 5 year period, I pay off the HELOC in it's Entirety ..... to avoid paying the High Monthly Payments that will occur after the 5 years time is up ?

Thanks very much, for any and all help 

I very much appreciate it