Tell me about your BRRR deal using a HELOC!

[Nicole A.]

Hey guys. Time for me to go back to newbie status since I am preparing to use a whole new method (to me) in my investing!

This year, my goal is to do my first BRRR deal. I will likely be using a HELOC since I have a good amount of equity in my personal home. Here's a list of questions, and please share your experience using a HELOC to complete a BRRR! Please go easy on me if any of the below questions are "common sense." I have an idea of the answer to many, but I want to hear your answers in relation to your own experiences.

In addition, I like clear, consistent answers, and so far my research has given inconsistent answers. Hopefully this thread can help other readers as well!

1. My personal home will need an appraisal for the HELOC. I'm of the type to have a few (okay, several) half-finished house projects. Do most HELOC lenders do an in-home appraisal? I assume my first step should be to finish all my half-finished projects so the house presents as well as possible.
2. If you purchase a property via a HELOC, it's as if you're paying cash. Why do many lenders require you own the home for 6months-1year (at least from what I've read) if there's no lien on the property?
3. Do you get the appraisal to cash out before or after you put a tenant in the property?
4. Along the lines of question 3, I saw a YouTube video of a guy doing a BRRR and he stated that he got an appraisal for his cash-out re-fi on the new property before the rehab was complete. Is this typical? Was this likely a drive-by appraisal? What's your experience?
5. Do you typically use your HELOC to also pay closing costs and holding costs?
6. If a HELOC from my personal home is used to initially fund a deal, what should be drafted up so not to "commingle funds" if I want my LLC to own the newly acquired property? What's your experience using a personal HELOC to fund deals for your LLC?
7. What is the benefit of rather than BRRR, using a HELOC to fund the down payment on a property? One could possibly buy more properties quickly (if you can get several mortgages at a time), but then you're technically 100% leveraged and have a HELOC against your personal home to pay off. Thoughts and experiences on this?