do the math on how long until you recoup that down payment.not trying to be discouraging, just trying to be realistic.

After a year living rent free I could have some money saved up again but still won’t be enough to buy a fixer upper outright and BRRRR (Without doing the math) and I wouldn’t be able to qualify for another FHA loan presumably.

I was simply using the example that the spreadsheet math often works within the context that many BP investors have seen (myself included in my REI investing journey).

Simple math really.It just has to make sense and to Gino's point, as long as the numbers work and you can pay back the HELOC, why the heck wouldn't you.To Greg's point, buy the asset and then stabilize it. 

There are specific math formulas to know here.  

If you have 1-2 properties it certainly seems unpredictable.And... the spreadsheet math of 'I will consistently net $227 a month, and exactly $227 a month, from this property, starting in month 1 and then going forever' was never correct.

Draw schedule to be agreed upon prior to closing.Term: 1 YearFee to Lender: 2.5 points – ($13,125 paid at closing from loan proceeds).Interest Rate: 11.5% Interest-Only billed monthly on outstanding balance.Interest Reserve: $15,000 – approximately 6 months interest, paid at closing from loan proceeds.Once interest reserves are depleted, borrower to make interest-only payments monthly.Pre-Payment Penalty: Should loan be paid off prior to interest reserve funds being depleted, a pre-payment penalty will be charged equal to the amount remaining in interest reserves at time of payoff.Loan 2: Loan amount 490,530.60Lender Points: 3%broker points: 1%rate: 11.99%Term: 12 months (interest only)Prepayment penalty: NoneProcessing fee needs to be wired before LOI can be issued these are just math questions.. 

-Taxes-Home insurance-Mortgage Insurance -Maintenance/Repairs-Capex-Vacancy-Property Management (many include this even if you don't plan on initially offloading to PM)-Utilities Let's say all in expenses are $2,000 per month for easy math purposes. 

At least 25 to 30 people signed up…you do the math.  

Check your math to make sure you're not violating this or your contract could be voided.