Should I use a HELOC to purchase my first rental property Thanks

[Malik Jackson]

Would anyone be willing to share how they used a HELOc on their personal property to purchase a rental property? Some of the details not to personal, just trying to get an idea if this is something I should do. Only looking to take out a small amount, thank BP!

[Ryan Howell]

@Malik Jackson - I suggest only using HELOC's for short term investments - i.e. BRRRRs. Utilize the funds for a downpayment, rehab, etc knowing you can refinance when you're done and pay off the HELOC. This way you're minimizing your interest payments compared to a cash out refi. Otherwise, if they funds will stay invested in the property, use cash out from a refinance as you can fix the interest rate, where typically a HELOC is variable.