Using a $200-250K HELOC to Scale—Looking for Insights from Experienced Investors

[Vincent Pflieger]

Hey everyone,

I'll keep this short and would love to hear from investors who have successfully leveraged a HELOC to scale their real estate portfolio for both short-term cash flow and long-term wealth building.

I’m about to unlock $200-250K in HELOC from my primary residence (a condo in NYC), and I know there’s a powerful strategy I can implement.

My current plan:

✅ Acquire a 10-15 unit multifamily in a mid-sized market (AL, TN, OH, etc.), targeting a $700-800K deal with value-add potential.

✅ Use 20% from my HELOC for the down payment and finance the rest with hard money.

✅ Force appreciation over 6 months, then refinance into a DSCR loan to pay off the HELOC.

✅ Rinse and repeat!

Has anyone executed a similar strategy?

What challenges did you face, and what lessons did you learn?

Would love to hear about pitfalls, lender restrictions, and any alternative approaches you’d recommend.

Thanks in advance for sharing your experiences!

[Jesse Ottesen]

I've done it for single-family residential. In 2020 I used the HELOC on my house in New York City to buy a house in Buffalo New York for all cash. In 2023 when the interest rates went up and my minimum payment tripled , I sold the house for a profit. I worked in the mortgage industry when rates were at 20 and 21% and my first mortgage was a bargain rate at 12 7/8. I also remember when cap rates were always nine or higher. As long as you realize that we can see numbers like that again , and you have the reserves to cover it you'll be fine .