HELOC cost in deal analysis

[Amr Rashad]

Hi guys,

Been lurking on the forums for a few years now, studying and reading while I payoff rash decisions made years ago (credit cards!)

I'm a fan of using the BRRR method, in acquiring & keeping rental property for years.

My question is, in BRRR, when you pull out your equity to buy the next property, do you factor the cost of HELOC repayment into your initial deal analysis?

My view is, if I want the property to have positive cashflow, I want it positive even after 'seasoning' ends and I pull my capital out of it .

Am I right? Or, is there something I'm missing?

If you do factor HELOC costs in, what's your method?

And do you plan to re-pay the HELOC in the first 10 years? Or do you plan on re-paying it over a longer term?

Would love to hear your thoughts, please.