Thoughts on using HELOC from primary home for first investment property

[Kemonté Bateman]

Hi All - My wife and I have been considering taking a HELOC out on our home to start investing I've ran some numbers (using ChatGPT) seeing if it would make sense with the understanding that the monthly payments from the HELOC would need to be built into the monthly rent - thus feeling like it's a challenge. Our approach is to use 20-23% for the down payment and looking at townhomes $280k and under, being that the price points are doable, 2/3 bd 1.5/2 bath is what we're looking into.

We would love to hear from any and all that have used this strategy or in general!

[Caleb Brown]

If you are going to use a HELOC I would do it on a BRRR or something you can refi out of. Using it as a DP to put down on a 30 year loan is tough. The chance it cashflows is slim. When you use it on a BRRR you can pay it back then rinse and repeat