Necessary to Pull HELOC Funds Out of BRRRR Immediately?

[Christian Nachtrieb]

Hi BP,

Had a question about a current BRRRR I'm finishing up.

Used an $80k HELOC to purchase and rehab a rental property in Boston area. My rate as of right now is 5.5% not great but not the worst. I'm very confident with a cash out refinance I'll be getting all of my capital back out plus a little extra to cover closing costs. My only question is... why rush this? Rates are trending down, is there a particular reason why it's a bad idea to leave HELOC funds in an investment UNLESS I'm planning to immediately redeploy the money? I suppose each situation is different, but just curious what your take is on the timetable of a typical BRRRR.

Thanks everyone!

[Mike McCarthy]

I agree, I'm sitting on using some HELOC as I'm getting some extra cash flow as the loan is less than a full ARV refi. Just remember that it'll take 30-45 days to close on your refi, so plan ahead for the next deal that falls on your lap!