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I did this. Got very lucky and refinanced the investment property pulling out majority of my equity to pay back the HELOC right before rates shot up. The property increased a lot in value simply because it was 2021-2022. I highly doubt we’ll see values shoot up this rapidly anytime soon. The HELOC I have is floating rate. It was at 4% when I bought the investment property and is now at 8% due to prime moving so much. Be educated and prepared for worst case scenario. Be ready to come out of pocket to fund the HELOC should you end up being negatively leveraged due to floating rates. Just my two cents.
Thank you!
The 100% correct answer is it depends because the numbers would have to work. But because you’re asking here, I’d say No bc you’d have no equity in the home at that point.
Thank you!
I currently use a HeLOC on my primary to finance renovations on my flips. I pay it back once I’m done then start again.
Well when I first got it, I tried to get the most line of credit that I possibly could. Now that I know what my limit is, I just get what I need when I need it, not all at once. I receive invoices from the subs and based off that, I take what I need from the HELOC.
Any way to get HELOC on the loan investment property?