Refinancing or keep current heloc

[Ryan Diehl]

First time investor. I bought a single family home for cash in November, did the renovations and now have tenants. To pay for this, I used a heloc on my current home. Question- do I keep the heloc I have and just pay it down or do I get a heloc on the rental property to pay off current heloc and go forward with another property? 

Thanks!

[Jonathan Greene]

What is the rate of your HELOC you have going and what would be your rate on the new HELOC?

[Ryan Diehl]

It’s 6.75 intro for 6 months then goes to 8. I would get the same deal if I did another with the same lender. 

[Albert Bui]

Quote from @Ryan Diehl:

First time investor. I bought a single family home for cash in November, did the renovations and now have tenants. To pay for this, I used a heloc on my current home. Question- do I keep the heloc I have and just pay it down or do I get a heloc on the rental property to pay off current heloc and go forward with another property? 

Thanks!

 The question is mostly a personal financial planning question and it depends on your preference and what balance of risk and access you'd like and would be comfortable with. Some people only want 10-20% of their outstanding lines/debt balances available while the other 80-90% to be in fixed rate notes. Some who are more entreprenuring folks might say 60-40 or 50/50 it all depends doesnt it?

It depends on what rates these lines are, what are the margins + index rates at today ? What index are your heloc's based on ... ? (probably prime but who knows might be TCM) and how much availability do you have right now? is it enough to carry you into your next projects while maintaining enough access to keep your current real estate operating smoothly?

Where are your fixed rate notes at and their respective monthly PITIA payments ? Where are your scheduled gross rents and effective rents so far in the last T12 months so we can figure out offense and defensive strategies.

These would be the questions we'd go through in planning your steps ahead.