If you do not want to do that you will have to put down 25% and then at that moment the 75% income variable comes into play. 

However, if we get a HELOC with variable rates, the interest rate could be much higher than 7% when we need the funds for a down payment in 2023.Do I lock a lower interest (fixed) on my loan right now even though I don’t plan on using it this year, or do I take a HELOC with variable rates, don’t make payments now but risk paying a much higher rate when I draw in 2023Thank you for your help BP community.Cheers!

If you do not have connections with contractors and/or do not have real estate investment experience, I would go with the safer route and purchase 3 properties that are already in shape to get them rented out.Too many variables when doing a BRRRR as your first investment.On top of that, you should start to cash-flow from day one.Best of luck!

For example, the HELOC is a short-term, variable interest rate loan.

From a cost standpoint there are a ton of unknown variables:* How many elevators will there be?

Now, I am not an attorney or accountant, so I cannot give you legal advice, but there are many variables as to what benefits you may get, depending on how the money comes back to you. 

Now on you is making sure you know your numbers because your carrying the variable risks, so gotta make sure there is profit margin in things, and that is ample enough for the various variables so we are not talking a few hundred per month.

For example, financing the renovation of a property and then doing a cash-out refinance in 6 months to pay back the HELOC.This is because it is generally a variable-rate loan with interest-only for the first 10 years.

For example, financing the renovation of a property then doing a cash-out refinance in 6 months to pay back the HELOC.This is because it is generally a variable-rate loan with interest-only for the first 10 years.

This helps give me a macro look at some variables that go into market health.