Use HELOC to buy, then refinance into mortgage?

[Jordan Kaylor]

I'm new to real estate investing and have secured a HELOC on my existing home. I'd like to use this to make an "all-cash" offer on a SFR, and then convert that to a conventional mortgage to pay off the HELOC. Dumb question, but is this called a cash-out refi? Or is there a different term for this?

[Nicholas L.]

@Jordan Kaylor

yes, when you refinance that would be a cash-out refinance. but you would only want to do this as part of a BRRRR, otherwise you're paying closing costs twice for no reason, as well as the interest on the HELOC prior to refinancing.

and, conventional loans can have seasoning requirements of 6-12 months... DSCR typically 3-6.