Using a heloc to invest

[Spencer Lindquester]

My fiancé and I want to buy our first rental property here in Texas. We want to BRRRR a property and are thinking about using a HELOC on our home which we own free and clear. Any tips on getting approved for the HELOC and best way to use it in conjunction with private or hard money until a cash out refi?

[Steve Brown]

I just set up my HELOC with the local bank. It was very simple. I have a few properties in mind but I have not used it yet. I'm basically looking for the 'typical' BRRRR home; needs some work and I can get for well under market value. I plan on fixing it up and reselling it or renting it out and then refinance and pay off the HELOC. At this point, I'm trying to not use private or hard money lenders. Good Luck!