[Calc Review] Help me analyze this deal

[Lindsey Kocher]

Found a deal through wholesaler and need some assistance understanding the different ways we could structure our financial strategy.

$167k HELOC @ 8.25% on our primary residence as source of funds and good connection with pre approval through local credit union for a commercial loan, 15 yr balloon amortized 25 yrs.

House is 3/1, 2 blocks from a large college campus and rented $200 under market rent until May '24. Wholesaler offering $67k. needs 25-30k to add value and update deferred maintenance. Initial purchase is cash from HELOC as closing is next week.

any planned big ticket rehab would not take place until lease is complete to prep for students next fall. Until rehab is done and rent can be increased the return here is 1%.

QUESTION: 

A - purchase from HELOC now and immediately refinance for purchase price only, HELOC for rehab

B -refi with construction loan or simply keep everything in the HELOC? It seems our HELOC payment eats most of the cash flow....

C - HELOC for entire cost and refinance after rehab

Report below structured as option A..

View report

*This link comes directly from our calculators, based on information input by the member who posted.