Should I pay off my HELOCS right now?

[Wes Mccullar]

Hello all!

My wife and I begun our RE investing journey about a year ago leveraging 2 HELOCS on our primary resilience to purchase STR's. We are cash flowing pretty nicely now and we're wondering if right now is now a good time to start paying the HELOCS off, or should we stack cash and increase capital right now for more future investing?

Thanks in advance for any guidance

[Kevin Romines]

It would be the same as far as paying down the HELOC's or stacking cash. However you wont gain much interest on the stacking of cash, but you will reduce the interest owed on the HELOC's. So the better choice is to pay down the HELOC's. It is equity you can access again when needed. The only down side risk is if the economy takes a huge crap and they shut off the HELOC's again like in 2008. At which point having stacked the cash is a safer bet. The odds of that happening are slim to none though, but anything can happen and no one has the ability to see what may be coming? Odds are though, that paying off the HELOC's is better choice with better benefits. God, I sound bi-polar!!!

I hope this helps.