Heloc loan inquire and help

[Eldon Mitchell]

In the process of getting a heloc on my current home, what would be the best strategies to use a heloc ? To use it the right way 

[Brendan H.]

I would recommend using it for short term plays. HELOCs are variable rates, so with the rising interest rates, the HELOC payment will continue to rise. So, you could use it as part of a BRRRR strategy. Use it to buy a property with cash, then ReFi and get most of your money back and pay back your HELOC, as you won't pay interest on the amount you pay back. Then go do it again.

Or, use it for the rehab portion. Buy a property with a loan, then use your HELOC to do the remodel work. After you remodel, ReFi and get some or all of that money back, and pay back your HELOC, until it's time to strike again.

Debt consolidation is also smart. The more consumer debt you have (at high interest rates), the tougher it can be to start investing. 

good luck!