How to use a heloc to finance more rental purchases

[Will Bumgarner]

Hey guys, I’m fairly new to BP and real estate investing as well. I’m in NC not too far from Raleigh. I started investing in real estate in 2016 and began wholesaling properties. I made enough to purchase my first property, a duplex that I bought for $4k. I got an excellent deal and decided to buy instead of wholesale. With minor repairs($3500) I have both units occupied. In 2017 I bought a SFH for cheap($10k) and have that rented out as well. I’ve recently decided that I want to increase my “portfolio” and purchase additional homes, taking advantage of the equity in my duplex. I spoke with the bank and decided to take out a heloc on my duplex. It appraised out at 66k and I have access to $50k to fund future purchases. I have 4 single family homes under contract at the moment for $18 k. One of the homes is a 4 bedroom that needs a full rehab. My question is if you where in this postiion what would you do? I know i still have 32k of the heloc available for future purchases,( don’t have a solid figure on the rehab but I’m thinking 25k at the most). But my question is, is it smarter to pay down the heloc over time using the rents or refinance one or all of the houses I’m buying to free up my heloc for future purchases? I’m new to the loan world and have never had a mortgage so my knowledge of them is limited. What is the best option for continuous growth of my portfolio without breaking the bank or putting me in terrible debt?