HELOC Exit Strategy?

[Joseph Turner]

I'm looking into acquiring my first HELOC on my California rental for OOS cashflow investing but struggling to come up with viable exit strategies to get out from under the HELOC and essentially rinse and repeat. The only method that really comes to mind is BRRRR, which I am not opposed to, but would prefer something a little simpler for a first time deal.

Similarly, I'm making an assumption that it might be possible to use a combination of HELOC and DSCR loans on something a bit more turnkey for the initial purchase and then refi into conventional after a year or two rental income?

I'm sure there are other strategies available and would greatly appreciate all insight others are using to pay off and reuse their HELOCs.

[Jonathan Taylor]

@Joseph Turner keep in mind that DSCR lenders do not allow 100% borrowed funds to BUY an IP. A HELOC is considered borrowed funds. The way to utilize the HELOC funds is draw on the HELOC at least two months prior to buying so the funds have seasoned for 60 days.

DSCR loans allow as little as 90 days seasoning so if you buy an undervalued turnkey, you can rinse and repeat the HELOC quite quickly.