Should I do my HELOC at 100k at 6% or 75k at 4.5%

[Jeremy Karja]

Hi BP team,

My question is simply: Should I do my HELOC at 100k at 6% or 75k at 4.5%? I have two credit unions that would give me either option but I need to decide today because the 100% at 100k (equity I have in my home) will change to 90% on Monday which is about 75k.

I assume the answer is more money is better because that is only about $100 a month more in carrying costs at 6% vs 4% for access to an extra 25k.

Of course your next question is, it depends on what your doing. My plan to use BRRRR strategies mainly but my wife is getting her RE license now and wants to do 2-4 flips a year while I do 2-4 BRRRRS a year. Long term goal is many rental properites.

I plan on mainly using my IRAs and HELOCS to fund deals until I have a track record then I want to raise money.

Thanks for any thoughts.