My wife and I own a duplex that we rent out that has about $660,000 in equity. I am thinking of doing a HELOC on it. This is my first time and this is the part where I get a little shaky. Assuming a LTV 70% for a HELOC we could get $462,000 to draw from? If I used this money to do a brrrr I should by something at 70% of ARV? So say I used $400,000 to buy a home and rehab, I would want the ARV to be $520,000? I rehab, rent, and then refinance? Now is where I get even more shaky.
