Refinancing out of a HELOC

[Emmanuel Fregene]

Hello, all!

I'm trying to get a better grasp on HELOCS as it relates to the BRRRR strategy:

Let's say you use a HELOC to buy a property. Once you've done the rehab and rent, how exactly does the process of getting your HELOC money back in the refinance work?

I’d greatly appreciate any explanations. Thanks!

[Andrew Syrios]

If you're using a HELOC to buy a propert, that HELOC would need to be attached to another property you owned, probably your primary residence. (Unless you bought the new property for cash and then put a HELOC on it which wouldn't make a lot of sense.)

So once you refinance the new property, can you use the proceeds to pay down the balance of your HELOC, hopefully to zero. Then do it again with another investment propert. Does that make sense?