Things are moving forward with the HELOC. Jim said, “We have approval”. We need to provide LOEs (letters of explanation) for our recent credit inquiries and a few other minor documents. We have given credit card info for an appraisal!

I have been giving some thought to financing and these ADU projects. I suppose it would be smart to try and get a construction loan (the one through Anton) to finance project. That way we can keep the HELOC funds for BRRRR acquisitions, if we decide to go the BRRRR single family home route.

The more I read the more confused I get and I get more clarity at the same time. I’m struggling with strategy at the moment. Once the HELOC is funded, there should be about 300k in funds available. Then, if we can get the construction loan for the ADU addition, we have the HELOC funds available. Should we use the funds to BRRRR a few single family homes and then move into multifamily? Should we go into multifamily straight away? If we decide the latter, how do we recoup our capital like in a BRRRR deal?

These are good problems to have.