The HELOC strategy may work, but many lenders are wary of putting a HELOC on an investment property and if they do they still cap LTV at 75-80%.

I’m a broker based in Charlotte, NC, and I work with Compass to support investors in maximizing their growth strategies.

However, unless you're doing this as part of a BRRRR strategy, you may end up paying closing costs twice and incurring unnecessary interest on the HELOC prior to refinancing.Additionally, conventional loans often have seasoning requirements of 6-12 months, while DSCR loans typically require only 3-6 months.This post does not create a CPA-Client relationship.

Hi, We're looking to invest in properties in Detroit preferably with the BRRRR strategy. 

I agree with the house hacking strategy.

@Stephen FlemingFrom my experience working with over 400 investors, your strategy of leveraging a low mortgage rate, tapping into home equity, and diversifying with a short-term rental (STR) in Northern Michigan is well thought out.

There are certain areas and strategies for that (and city laws you should be aware of).

To me forbearance is poor consolation for what is essential government take over of private property. 

This gives much better diversification protection across geographies, asset types, strategies, investment subclasses etc. versus putting all the eggs into one basket.The downside is that it's not for everyone, and a person has to be comfortable with turning over control to someone else.

I have construction loan on the current house I'm building and used similar strategy (land was purchased outright and used to cover majority of the down payment).