What to do with 140k HELOC?

[Matt Smith]

I have 140k on a HELOC, and I'm wanting to know the best route to take to invest it. I currently have an airbnb in the Tampa Bay area which is performing well. I also bought a new primary residence last year and have been house hacking it. The plan for that is either rent out my room or convert it to a sober living facility. Either option would cash flow around $300/m. It's time now for me to move onto the next property. I'm learning about BRRRR strategy right now, and would love to utilize it, however dont want to burn all my capital on one property. I currently also wholesale in my market and am looking for deals on my days off from my W2. Ultimately, I want to quit my job (of course), move to a new area and focus on REI. What is the best route to take now that it is time for me to move onto my next property? Thanks

[Bryan Montross]

Matt, first thing to make sure is that when you are using a HELOC it is for a short-term loan. Do not use the 140K as a down payment on a new rental you plan to hold for a long time. The one exception would be the BRRRR strategy if you plan to fix it up and refinance into a long-term loan later.

Regarding BRRRR, you say you don't want to "burn all my capital on one property." Even if you use all $140K on one property, when you refinance you should get most, if not all, of the back so you can move on to the next property. If you are just starting I would not try to do more than that at a time anyways. As you build your capital then you can start looking at multiple deals at once, but use it now on one deal, refinance and pay it off and have it ready for the next. That's how I would go.