Hi! Curious how this went. I’m in the exact same situation. Going well? No issues with the HELOC?

You can use your VA home loan more than one time and you can use a VA home loan to build a new home or purchase an existing property and there is even a renovation option for VA home loan

They never really left. Though, when interest rates were crazy low about 2 years ago, some stopped doing them simply because they make no money up front on them and it takes the same staff to process a HELOC vs Conventional Mortgage, which pays them up front, and so with the crazy volume they were doing, some, including Navy Federal Credit Union stopped processing HELOCs for over 1 year.

Was your home full paid if not then why would 1st lender DOT allow 2nd lender to take first position?

@@bannertraveller5879 it wasn't paid off. It was like a refinance. They gave me a HELOC for 80% of the full value of the home, then I used that HELOC to pay of the existing mortgage. So my HELOC immediately had a balance of my previous mortgage

Where in Hawaii are you @sione007

@@sione007 I see.very cool!

@@atiaimesui2199 Im in Ewa Beach, Oahu, the rental is in Nanakuli

I think, there is, but you'll likely pay higher interest rates like with credit cards. Why would you need a HELOC credit card? Just have regular credit cards and transfer money from your HELOC to your checking then pay off your credit card after purchases. HELOCs often come with Checks so you can also just write a check against the HELOC.

Further, these guys seemed relatively unknowledgeable about HELOCs. Most major banks and credit unions have a 10 to 15 year draw period (some as low as 5yrs) followed by a 10 to 15 year repayment period; so whatever your balance is at the end of the Draw Period, that gets fully amortized over the repayment period of 10 to 15 years, FULL Principal and Interest. During Draw period, common payment required is 1-2% of the loan amount (amount actually borrowed, not credit limit). Also I'll share this tip/trick. ALL HELOCs can be Interest ONLY during their Draw Period. As long as you aren't maxed out and your remaining borrowing LOC (Line of Credit) is above your monthly payment amount you essentially can pay INTEREST ONLY even if your HELOC doesn't technically allow it. Here's How: Say your HELOC is for $100K LOC. You are borrowing $80K and your monthly payment = 1% = $800/mo. At 9% INTEREST, If the interest portion is only $600 (9% of $80K / 12), but your Min Payment = $800, you can simply take a DRAW From the LOC a few days before your payment is due, so take OUT the extra $200 (Principal Balance Portion = $200: Difference from $800 due and $600 Interest portion), then make your normal $800 required payment. Your Balance stays essentially the same and you made your full payment for the month $800 ($600 paid interest and $200 paid the balance back down to where it was). Now technically you'll pay just a little more interest (avg daily balance increased by $200 for say 3 days), but that's minimal compared to if you don't want to pay the extra $200/mo, every month. In fact, it's about $0.15 (15 Cents) on $200 borrowed for 3 days at 9% APR. Boo-Yah! NFCU for example offers an INTERST ONLY as an option for Primary Residence HELOCs; however they charge a 1% higher interest rate on the entire loan. NO reason to ever take that option! Learn how the system/programs works to YOUR benefit. However, Navy Federal Credit Union (NFCU) has the BEST HELOC I have ever found. They have a 20 Year Draw Period, followed by a 20 Year Repayment Period; so it's up to a 40 Year Loan!! Must be a service member or veteran, ** Or an immediate family member of a service member or veteran (including deceased parents, etc) to join. Can't say enough great stuff about them and NO I have no direct involvement with NFCU other than a delighted customer!

You just spat out an insane amount of knowledge hehe thank you! Screenshot!

@@galaxygolden I try to give back. I’ve spent countless hours on the phone over the years talking with mortgage brokers/originators and have learned the right questions to ask, etc. I often get asked if I used to be a mortgage officer, etc but no, just ask lots of questions and have been through the process mmmmaaaany times. Lots of loans over the years. Happy to help. Thanks for the acknowledgement 👍

@@AscDrew96 btw, this is not an ad, or solicitation, I’m just sharing info, not giving financial advice. Not a licensed broker or financial advisor. Seek professional advice. But above all else, Ask LOTS of questions from anyone you involve with your money so you understand the terms and details nearly as well as they do!

@@AscDrew really great stuff! I’m new to all this but this video drew me more and more to take action with my equity options for my rental. But of course very safely and with exit strats to pay the loc quickly before anything gets too out of hand with payment+interest payments!

Why over refinancing?

@@nufski One reason would be you’re only paying interest on the portion being used (albeit higher rate) and can then pay off and re-borrow without another set of hoops to jump.

@Asc Drew okay thank you. Makes sense

If you are buying it with 20% down, presuming Owner Occupied you would need to intend to occupy it and many new loan docs require you to take occupancy within a time frame and for a certain amount of time. It’s changed some over the last few years. Talk to your mortgage brokers to find out what they say the terms would be. Then do the math based on your available options.

But you can also house hack by living in one unit, renting out the 2nd unit, and then Also renting out some rooms of the unit you are living in. It’ll likely pay all the mortgage and then some, and you’ll essentially be living mortgage/rent free while saving some extra for future investments, etc. Eventually you can do it again, and again.

Why did you choose heloc over refinancing?

Should be able to if you still owner occupy the home the heloc is on.

Interest Rate might be higher as greater risk of default on a rental HELOC vs Residential HELOC

Did you listen to any part of the video? The one brokerage. Google them. Call them

Yes, they are great for that, try to find one that offers a LONG Draw period. That affords time and opportunity to borrow then repay and repeat the process many times before having to go back to the bank and get approved for a new loan/amount. So if the HELOC has a 15 Year Draw, you could do that 3 times if each repayment took you 5 years; all without requalifying. Generally, they DO have the ability to run your credit throughout the term of your HELOC so if your credit tanks, they could modify the HELOC limit I'm sure. So, be aware of that.

One Example if you have a high value property, you can become your own Hard Money Lender, to yourself. Ideally would look something like this: Good Equity in property A, take a HELOC on prop A; Use personal funds/“C” to purchase property B free/clear or down payment/loan, Use HELOC A to fund the rehab; Fix & Flip/Sale, or Rent out and do cashout refi of Prop B. Then pay off the HELOC on Prop A and get your starting cash back “C”+ profit and/or you’ve added a performing rental B to your portfolio. Then do it again. Benefits vs Hard money Lenders: Hard $$$ typically charge 3-5% in Points up front (or more) + 10-15% (or more) Interest rate; Interest only so you are paying Interest on the Full Amount borrowed for the full 6mo, or until paid off; typically for a 6 mo Note. IF you need to extend the note, you guessed it, another 3-5% in Points. They generally try to lend their money out 2x per year. Plus actual closing costs/atty fees/appraisal if needed. So, lets do the math: Borrow $50K for 6mo @ 12% Interest, 4 Points (4% upfront). $500/mo interest only payments ($50K * .12 / 12) * 6mo = $3000. 4Points up front = $2000 Closing costs say $3000. Costs for $50K borrowed for 1st 6 mo = $8K = 16% on $50K. Then if you need to extend the Hard $$$ loan cause contractors are slow, takes longer to sell/rent/refi, etc; say you extend for another 6mo: Interest = $3000 4 Lender Points = $2000 I think they simply the extension paperwork so closing on the extension is likely less, say $1000. 2nd 6mo subtotal costs = $6K (12% on $50K) Total Cost of Hard $$$ for 1 Year: 1st 6mo = $8K 2nd 6mo = $6K Total paid = $14K $14K costs to borrow $50K for 12mo = 28% paid = 28% ROI to the Hard $$$ Lender. **** By Comparison if you Self-Fund from the Equity in Your own Prop, with Your HELOC: Even at 12% Interest, your total would be $6K Interest on $50K borrowed for 12 months (assuming you paid interest only and drew the full amount on day one and paid off at end of 12 mos). HELOC cost: 12% Hard Money: 28% And after you pay off your HELOC, you can DO IT AGAIN, avoiding all the points and closing costs. And my example is Low/Moderate on the HARD $$$ rate and fees, and HIGH on the HELOC rate. Comments, feedback? Hard $$$ guys prove me wrong, show me your math. Hope this helps someone. **I’m not giving advice just math, observations and personal experience in talking to industry people. Seek you own certified financial advisors/counsel.

I appreciate your extensive breakdown. Seeing the math with the example makes it so clear to understand. I really needed that. Thank you.

@@AscDrew need some help

@@johnfoster2765 what?

⁠in a sense you’ve sort of transferred the HELOC to property B because of the cash out refi and depending on the rate you have on property B doing the refi May #1. Increase your interest rate and #2. increase your monthly payment and loan amount and increase property taxes, etc. I’m not sure I know what the benefit of refinancing B to pay of A is? Why not instead take a HELOC out on B to purchase property D, then with net income from A, B, D pay the HELOC off on A first followed by B second? Would this strategy work if one doesn’t have any of their own funds? My issue is… I don’t have personal funds for a 20% down payment to purchase a third property, I would have to utilize equity from my 1st or 2nd property to purchase the 3rd and then discipline myself on a restructured repayment plan that all net income goes back to repay the HELOC. Would this strategy work and how would you modify your breakdown if no personal funds in reserves, only access to equity? Thanks!

Sometimes they will ONLY do a 2nd position Lien. You can try to get a private investor note recorded in 1st position, say for $5K-10K, then a HELOC will become a 2nd position Lien when you get it.

@@AscDrew96interesting

How many rejections did you receive?

Same

@@fegoodson8752 Ok, but what was the reason you were denied??? Also, did you do a full application, or just inquire if they would lend under certain conditions?

Take out as much as you need for a non-commercial multifamily (3 or 4 unit) and the rental income should work in raising your income/paying down debt. Perhaps do it several times over the next few years. I would think that $60-$75K might be enough to get into a small multi, though I'm not sure about other markets as I invest in rural/vacation areas, which is usually lower cost of entry. Be careful though, those areas can have a whole host of non-standard issues (homes built before 1900 are a nightmare in so many ways). If you need a big chunk of cash, then cash-out refi may be the way to go. ASC Drew elaborates in an earlier post. Even better if you can find a land contract, though that might be difficult right now.

Thanks Barry. One other thing I’m not clear on what you’re asking. How much is available on your HELOC (approved and unused) vs I’m assuming your $230K is just regular equity locked in your primary home (until you refi or sell or take an equity loan). How much total are you trying to muster? Also there are Private/Non Conventional Lenders who write their own rules, some who personally loan their own money. Other options may be available if you find some of them.

I agree in general. Diff people have diff risk profiles. But deff prudent to use variable products sparingly; such as emergency funds, etc.

@@AscDrew I have an acre of land in Hawaii with a small house on it. I’m subdividing the lot into two half acre lots and building a second house. The interest rate on the existing house is 2.2% so I don’t want to mess with that. I’m thinking a HELOC locked in for two or three years would enable me to build the second house. It’ll be mostly a owner builder project, I’m a journeyman carpenter and construction management contractor. My exit strategy would be a cash-out refi when the project is completed and then multi-family investments either in Hawaii or Guam where I currently live, thoughts?

You said HELOC locked in. Do you mean a HELOC or do you mean a Fixed rate/term equity 2nd loan?

Whatever your options, pencil out the numbers as you’ve seen me do in some of the comments on this page/video. Too many variables to know off limited info given, just expect delays, build healthy margins into your budgets. Have a backup plan, and try to avoid any scenario that would force you to sell. If you plan and choose to sell that’s one thing. If you’re forced to sell, that’s when people lose their asses. Just my 2Cents, not advice, not a financial advisor.

@@AscDrew I mean you can get a HELOC fixed for 2-3-5 years?

What lender is offering a DSCR HELOC? Haven’t heard of those, not real ones.

@@AscDrew hey I thought that’s what they were announcing: HELOCS on investment properties? Maybe I misunderstood. I’m a newbie. I have 1 property with a dscr loan and would benefit from tapping into its equity. Could you clarify?

​@@sarahgrillo9915 There's a difference between an Investment property conventional lending using your DTI (Debt to Income ratio) vs DSCR (Debt Service Coverage Ratio). Commercial lending usually using DSCR while conventional/personal lending uses DTI. I'm aware of many conventional/personal lending on investment properties using DTI for qualifications, but I'm not aware of any using DSCR for a HELOC for loan qualifying. I could be wrong of course and anyone with knowledge can correct me. Simply ask your lender if they use DTI or DSCR for lending qualifications and if the loan would be in your Personal Name or if it would be to your Business (LLC). So, that's why I had the questions. Typically, in my experience, HELOCs are still loaned to YOU personally (and therefore reported to your personal credit report) vs a HELOC to your Business where the Business itself is the borrower, in which case the HELOC would NOT be reported on your personal credit report. The problem becomes as one gets more and more conventional loans in their personal name that report to their personal credit report, DTI gets higher (generally) and eventually you'll max out on your 40-50% DTI lending/borrowing limits that conventional mortgage lenders use as a max DTI. So, if you are getting to where you max out your personal DTI, you'll need to start borrowing via your Business (LLC) in which case you will want to search for Lenders where the Business is the borrower, and they use the DSCR of the Individual Property (or portfolio if it's a portfolio loan) to qualify for the loan - NOT your personal DTI. For a true Investment Property Mortgage for your business (even on a residential SFR) they don't use your personal DTI at all. All they look at is your personal Credit Score and whatever cash reserve requirements they have + the property's DSCR to see that the property can sustain the loan. DSCR = Market Rent Rate - PITIA of the loan. Example: $1400 Rent rate - $1100 Loan payment (Principal, Interest, Taxes, Insurance, HOA fees) = 1400/1100 = 1.273 DSCR. So, I was asking, is there a lender who provides a HELOC (vs an investment property mortgage such as 30 yr fixed) that is using DSCR for qualifications and lending TO a business entity vs HELOC to the individual person using their personal DTI? ** I'm not a licensed financial advisor or mortgage broker/officer, just providing some info from my personal experience; NOT financial advice.

@@sarahgrillo9915 I think some of the confusion is they never said the HELOC is loaned to a business entity such as LLC vs to the individual investor. Either way it's a loan against an Investment property, but I have yet to find a lender that does a HELOC vs fixed equity loan to a business entity (using DSCR of the property) and not to the individual investor (using their personal DTI).

@@AscDrew you know I am out of my depth and will definitely reach out to the one brokerage and get some clarification. The dscr loan is in our personal name not an llc. What you were explaining makes sense. I am still learning so I’ll be curious to see what I can find out.

Good Q. Not sure how they could call it due if you are performing on your end (not saying they can’t, it’s up to the legal contract/note, etc, and I’m no attorney), but prob not likely IF you are performing with on time payments etc. I imagine they would be busy enough calling delinquent ones due and leave the performing ones alone. That said, after the ‘09 crisis, I did have a HELOC Limit suddenly reduced by about 5-7% (so not too much), but since I didn’t know at the time they could do that, I pulled out the rest, just shy of the new limit. That way they effectively couldn’t reduce my limit any more (I’d already effectively maxed out my borrowing limit). I know I paid more in interest that way, but the HELOC was part of my safety net, And the prop value was Way Underwater, so they could have easily lowered the limit way more; like in Half. So I thought it was prudent. Years later, values recovered, interest rates lowered, so I Refi’d and paid off the 2nd.

Yes, they will.

Which company gave you one on your rental property?

How are you using a HELOC to help pay down your house, when your house interest rate is likely Lower than your HELOC???

@@AscDrew simply hitting the mortgage with huge chunks from my Heloc, say 7-20k chunks. It doesn’t want to make sense in our minds due to the higher interest rate right? 9.99% Heloc On a 3.5% interest home. The issue isn’t the interest rate, it’s actually the interest type. Simple vs amoritized. If you really are like what? Or how the heck does that work? I would challenge you to run the numbers yourself on your home (excel amoritization spreadsheet) you basically want to just start paying your house down using the Heloc and using your income to pay down the Heloc. Velocity banking prinicple. In my scenario I’ll save 130k of interest by paying 10k interest and pay my home down with my current cash flow in about 5-7 years. It’s pretty mind blowing. But there are trade offs to doing this like not being able to invest excess capital if an opportunity arises.

@@frankmanson9211 I'm aware of "Velocity" theory (which I think is wrong), though if you simply paid that EXTRA amount to Principle ONLY on your primary house loan, you would pay it off even faster! The velocity theory is based on being able to pay ADDITIONAL amount each month, yet you're paying that amount on a much higher interest rate on a HELOC. Convince me. Give me an actual break down of the math, specifically showing HOW Much extra you're paying each month vs how fast you would pay off the 1st mortgage if you simply paid that amount Extra each month as Principle Only to the 1st mortgage. My analysis in the past shows you would pay it off FASTER just simply paying additional principle to the 1st mortgage. The velocity theory is propositioned on paying every extra penny you have, but if you paid every extra penny you could spare to the 1st mortgage, you would pay it off even faster and pay even less in interest during that time. Again, it's not about the complex working of paying HELOC and shifting money around constantly, it's about the interest rate and balance owed.

@@AscDrew it sounds like you’re already pretty familiar with it man. That’s great! And I completely agree, and that was one of the big caveats I saw (the whole why not just use your money that you have). I’ve tried it and I like VB personally. And as far as proving it to you, just run the numbers yourself, You’re smart. You can technically save interest by simply paying down the house, but VB betters your relationship with the bank, gives you the jump start to paying down the home if you don’t have 10k sitting around in the bank. Don’t get me wrong, there are definitely trade offs, I like using the banking tool to pay down amoritized debt which is all front loaded. 👍 but you do you man

on rental properties?

Just about every lender offers a heloc on an O-O. The big question is: Who offers one against a NOO rental???

A HELOC IS a 2nd Mortgage, it's just not funded until you need/want the money and the repayment is structured differently than standard 10-15 year full amortization. See my longer descriptions above.

Can a heloc be converted into a fixed 30yr home equity loan?

@@Lynaka1 “Converted” no, but you can do a standard refi at any time, subject to standard cashout refi terms/limits. It would be considered a cashout even to pay off a 1st and 2nd Mortgage (including 2nd/HELOC). So as long as it’s a primary residence up to 80% LTV or generally 70-75% on Investment property.

@@Lynaka1 You Can generally lock a portion of your HELOC into a fixed term equity loan at fixed rate. Many HELOCs allow you to have two fixed rate/fixed term conversions at a time. They generally will fix the rate/term at relatively current Prime Rate rates. For example if you have a $100K HELOC Limit, and a $50K current balance, you could choose to lock a portion of that, say $5-$50K into a fixed equity loan generally at current 2nd mort rates. So like $25K loan on 10-15 year amortization at maybe Prime + 1%. Each lender’s terms, rates, etc would vary of course. In that case, if you locked $25K of your original $100K HELOC, Your HELOC Limit would likely be reduced to $75K Limit.

@@AscDrew I will be using my heloc to pay for my ADU. It’s fixed for the first 5 years then variable. I don’t want to touch my primary fixed rate at 2.5%. What other options would I have after first 5 years?

Brrr buy renovate rent refinance repeat something like that

Generally BRRR method or BRRRR method refers to: Buy (cash or hard money or 203K loan, or private $; or with partners), Renovate, Rent, Refi, Repeat. So you Buy a fixer House, Duplex, Apartment Complex, Office Building, whatever; fix it up, put a tenant in it (lenders like it to be occupied), do a Cash-out Refi (based on the new value of the Improved property), get as much of your money back out as you can, then repeat the process. Many Lenders require a "seasoning" period where you have to Hold the property (own it) for a minimum period of time before they will let you cash-out/refi. This is typically about 6 months, but some Lenders have 1 day, or no minimums. In theory you can take the same chunk of money and repeat the process indefinitely IF, and it's a HUGE IF, if you can keep your Total Costs UNDER 75% LTV of the AFTER Repair Value. VERY hard to do in reality. In my experience you generally will leave some of your own money tied into the property with each BRRR, However, it can still be LESS than you would have tied into the property IF you just did a conventional purchase and put 25% down plus loan/closing/rehab costs (generally have to paint of fix something before renting).

@@AscDrew96How do you finance the renovations of the property that you buy? Let’s say you purchase a rental at market value, where can you access the funds to finance the rehab if you do it yet have any growth in equity except for maybe your down payment which I would leave alone to avoid paying PMI. Thoughts?

​@@gingerlox1050 That is one area where a HELOC can help. If you have funds for the purchase, then AFTER purchase, you can take a HELOC on that (or another) property to fund rehab. Just make sure you can afford the HELOC payment until paid off. "Market value" is assuming that the property you purchase is discounted for its present condition. So if a fully rehabbed house is selling for say $300K and you buy one that is very dated or trashed and needs full rehab, then I would expect that you are not paying $300K for the house needing updating/rehab. So, say you buy the FIXER property for $240K and have a new loan on it for 75% of LTV ($240K being present value), then you have a loan for $180K on the property. On an investment property, many lenders may not loan to a LTV higher than 75%, so that's where a HELOC on a different property that you may have additional equity in can help, OR there are lenders that will loan to a Higher LTV (loan to value) ratio on a Primary Residence (one you live in; up to 90-100% LTV). So if you are able to get a HELOC on your primary residence and fund the Rehab on the new investment property then that can be a good source for those funds. Once the rehab is complete, you can do a Cashout REFI of the investment property to 75% LTV of the NEW Improved Value of the property. Sometimes there are seasoning requirements such as have to have owned the property for 6 months before you can do a Cashout Refi. Also, sometimes you can only cash out the max of the purchase price plus your costs of improvements. But even if that's the case, you can get all your money back out of the property and pay off the HELOC on the primary residence. In which case you have a newly rehabbed investment property (for sale or long term rental) that can likely A) Rent for a higher rental rate and B) holds increased value in your portfolio ($300K/post-rehab value vs $240K/pre-rehab). Hope this helps.

Correct in general, depends on many variables, liquid assets, history of performance, etc etc.

Nothing fishy. Banks have done them for 30 years I've invested.

Navy Federal, Figure, Quorum

And many more, just call around and ask some questions. But NFCU is awesome!

Also, check out Scotsman Guide, free publication for mortgages industry and has lists and lists of Lenders, their guidelines, and contact info.

Any suggestions for banks that offer HELOCs for people that own 10+ properties? Thanks

I’m in the same boat

Why is your credit jacked up?

No Great solution. Lowest hit to your DTI would likely be a regular cash-out refi, however that depends how much money you're trying to pull out; because it's fully amortized over 30 years. If you only need $20K then a HELOC for $20K-$50K may be the answer. HELOCs generally tied to Prime Rate + a margin (varies by bank/credit union/lender). Going forward (or you Can refi), put new loans into an LLC using a Commercial Loan where the Borrower is the LLC, not YOU (though you will likely need to be a guarantor - diff from borrower). Make sure it's a true commercial loan and NOT reported on your personal credit report, otherwise it will continue to affect your personal DTI. Commercial loans on investment properties, including SFR, typically use DSCR standard (Debt Service Coverage Ratio). DSCR takes the Market Rent Rate (as determined by an appraiser (typically; and they typically come in low in my opinion) and divide it by your full PITI payment (Principal, Interest, Taxes, Insurance (and HOA if any)). EG: $1400 rent rate / $1100 PITI Mortgage = 1.27 DSCR. Typically Commercial Lenders are looking for 1.2 DSCR or better, may go as low as 1.0, and some maybe even under 1.0. The lower the DSCR typically the higher the interest rate, and yes Commercial rates are typically 1-3%+ higher than conventional Freddie/Fannie mortgages. Finally if you're a veteran, active military or have immediate family that is, including deceased parents, then you're eligible for a Navy Federal Credit Union (NFCU) account. They are the largest Credit Union in the US by Assets. They are a phenomenal institution!! They do HELOCs on Primary, 2nd AND Investment properties! Generally no fees, sometimes if you cancel within 3 years there's some cost recovery for appraisal, etc, but when I called them 2 weeks ago they said they don't even have that.

However, IF you have consumer debt such as credit cards, auto loans, or other loans that can be Paid OFF with the HELOC funds, then you can have the Lender pay those off as part of the Loan Process in which case they won't be calculated into your DTI since the Lender will make their payoff be a required part of the loan process. Then, such as with an auto loan, you can likely do a cash-out of your vehicle (new auto loan) AFTER the HELOC closes since auto loans go primarily off your Credit Score, not as much on your DTI. Your auto loan will likely have a Lower Interest Rate, BUT possibly a higher payment because it's amortized over say 5 years of Principal And Interest, where the HELOC can basically be interest only during the draw period. ** In Summary look for ways you can pay off or restructure your existing Debt, including during the HELOC loan application process (have the lender pay them off with the HELOC if necessary), and that may net you a Lower DTI than your current scenario.

@@AscDrew96 Hi! can i use a HELOC on my primary residence in order to fund the purchase of a rental property?

@@austinitel.2972 Basically yes. You can use the money for whatever purpose you want after the HELOC is established. You may not be able to write off all the interest expense on your taxes, consult a tax pro for that kind of info. But yes, if you want to borrow say $50K for the 25% down payment on a $200K rental property, yes, you can do that. The new mortgage company will just want to know where the money came from and will calculate your new HELOC payment into your DTI if you are doing a conventional investment prop mortgage on the new rental.