HELOC repayment strategies

[Griffin Francis Eaton]

Hey Bigger Pockets! 
I was hoping to get some ideas on how investors are paying off their HELOCS for REI. I would like to buy, rehab and hold another multifamily in my area. The price is to high to Buy cash but I would like to use the HELOC as a down payment and funds for the renovation. Then recharge the line of credit and do it again. If anyone has a method they would like to share on there repayment strategy, I'm all ears!

[Joe Splitrock]

@Griffin Francis Eaton we use a HELOC for making cash offers. Our HELOC only requires interest payments, so we follow one of three strategies to pay it off:

1. Refinance into a conventional mortgage and use the proceeds to pay off the HELOC.

2. Take the extra cash flow and make a principal payment. 

3. Use other savings from overall cash flow and W2 income to "chunk" payments and reduce principal.