It is a riskier model versus renting in my opinion so a higher return would make sense.

I love the model and consider it a win/win for all involved.  

Nothing is guaranteed....It is much easier to admit to the fact that some markets are CF markets, and some are appreciation markets, and you invest accordingly, than it is to argue that appreciation model is just speculation....

His go to model is owner financing.

your ability to pull cash and pay down the HELOC will depend on your value of your "investment property," that you're currently buying after you fix it up.If the value is high enough you'll be about to get out a new cash out loan that is high enough to refinance your current outstanding debt plus provide sufficient proceeds to pay down or off the HELOC so that way you can rinse and reuse it again on a new property.As long as you gauged value correctly on the buy side of the investment property you should be fine.As for how DTI is calculated on the HELOC, it depends on who you go to for a loan but typically we'd take the current min monthly interest payment on your current monthly obligation.Some banks had higher hypothetical payment models (assume 1% min monthly payment on the limit of your HELOC) which threw your DTI off, just try to avoid banks like this...

While the BRRR strategy is attractive, you will have to find a "deal" that will fit into the model.

Its a very interesting model you have with keeping your buy and holds in lower economic areas to hedge against a crash...i think thats awesome.

Your local mortgage brokers can help get you through the ins and outs of this model because I am sure they have seen it quite a few times.

The indirect model has you subscribe to an LLC from the platform (like RealtyShare or RealtyMogul).

I was thinking of using a HELOC for short term money that I would convert into a traditional mortgage later, BRRRR model??