Using HELOC for the BRRRR Strategy for Second Deal

[Eric Kissinger]

Hello all! I am currently using a HELOC on my first home to purchase a second property. When using my HELOC it will role into 100% Interest Payments that may be to steep to make any deals worthwhile. This may seem obvious but factoring in that cost is essential in the deal correct? For example, if expect to get 1500/month rent and my HELOC monthly payment ends up being $350 per month (eliminating all cash flow after all other expenses are factored in), how else can I factor this in? I know the BRRRR strategy means refinancing but with climbing interest rates I decided to pull a HELOC.

Am I looking at this wrong? The HELOC overtime will cost me much more in interest than a refinance, but I am still making the right move as long as I can find a deal that could supply even a little bit of cashflow? Any BRRRR tips using a HELOC is greatly appreciated!

Thanks, Eric Kissinger