Paying off mortgage, them getting a HELOC

[Ayne C.]

I'm considering paying off our primary residence mortgage in full and then getting a first position HELOC to use for short term money (for new BRRRRs). I'm my head it seems like a killer strategy. What am I missing?

We already have 5 doors (30% LTV across the portfolio) and healthy cash reserves. Partner has a good w2, and we are already lean-FIRE.

[Ayne C.]

@Seth M. Jones I am not against leverage. The way I figured, I can pay myself, get HELOC, then borrow from myself (my HELOC), buy property cash in the wholesale market, fix, rent, put a regular mortgage on it and pay my HELOC back. Then repeat on the next deal. So I'm still leaving behind a leveraged property. In the meantime I no longer have that 2300 monthly mortgage payment (I know I know... too much house for my area, tsk tsk tsk).