Using a HELOC on paid off home vs cash for BRRRR investing.

[Lukas Parsons]

So I'm in a unique situation where I own a property worth around $213,000 that is paid off. No mortgage. I also have access to about $30k cash through a bond that I can tap into. I have not yet purchased a rental property ever. My question is this: should I be focusing on tapping into that 30k for down payment and rehab on a property? Or should I be looking for deals where I can use a HELOC to minimize my personal cash investment and improve cash on cash roi? Thanks for your responses.

[Jibu V.]

@Lukas Parsons Also, whatever you do, avoid the large national banks for the HELOC. They tend to come back with lowball appraisals on HELOCs because many of them use a national “appraisal” company that does not select appropriate comps. That makes it not worth it even if they offer a 90% LTV. The local banks and CUs will be more familiar with your area and comps.