Back up savings has served me well in personal life, the same principle certainly will hold true in this area as well.

I think one of the biggest positives apart from adding to your portfolio and getting an extra $100 a month is establishing a record of being a landlord and making a profit. when people talk about the Brrrr strategy they don't mention that a lot of lenders won't lend to you unless you have provable experience as a landlord, almost the same principles as a 1099 employee you need to prove that you have an income in that industry

I suppose I'll never have to pay the principle with this strategy so factoring the interest only is probably good enough.The $150 is a worst case scenario and assumes I'm also paying principle on the HELOC.I have not looked at a refinance of this current mortgage.

For me, I basically gambled away my life-savings on a sight unseen BRRRR almost 2 years ago.

I understand that using my own equity/cash to make the purchase goes against some of the basic BRRRR principles, but I want to ensure that my numbers are accurate when using HELOC funding for the acquisition.

Because 100% of the money is going to the principle and you are not personally liable 

The founder of the company I work at for my day job valued partnerships and win-win deals for all parties and he built a multi billion dollar business over his lifetime based on that principle. 

You will see different options in terms of principle and interest in the payments vs interest only. 60% LTV seems on the lower end too. 

Justin does not have to put offers in on properties that are “sight unseen” if he has established feet on the ground here in Huntsville.

Catch is no refi or payment of 20% down against principle for 3 yrs without a penalty.