Negatives of a high LTV HELOC?

[Brian Dickerson]

Hey guys, we are in the middle of our first BRRRR project which has most of our cash tied up for the next 5 months or so. We bought our primary residence 20 months ago and did some improvements so we have equity already in it. We want to get a HELOC to use as temporary funds for BRRRR projects until cash out time. For the current project it will help cover some of the rehab.

Debating getting an 80% vs 90% LTV HELOC . The extra 10% LTV will give us another $40k or so available in the HELOC

Factors I am considering:

- With the 80% LTV I got a prime - 1% rate and the 90% LTV will be Prime+1%.

- Some lenders use the maximum HELOC payment (assume the HELOC is maxed out) when calculating DTI so could hurt future loans possibly? **this is my main concern

- Additional risk by taking out 90% LTV against our primary residence. I like the idea of having access to the extra cash at a lower rate than I could find elsewhere. Don't plan to max out the HELOC but it could be tempting to do a bigger deal with the extra funds available. What is the REAL risk here?

Any input you guys have is appreciated!