HELOC! Would you recommend it for my first deal?

[Everton Bradford]

Hey everyone, I'm a newbie investor and looking at multi-family properties in Maryland. I'm hoping to house hack for a year and then move out for more cash flow. I'm looking into all my options for financing the down payment I'll need(I'm still analyzing deals with my agent). I wondering about tapping the equity in my current home as an option to help fund my first deal. Does anyone have any experience with using home equity line of credit or loan to help fund the down payment for a deal? Would you recommend it? Any pros or cons?

[Ruth Lyons]

I personally wouldn't tap into HELOC for a first deal. Yes, it's a good rate, but you're too green to know what you're doing and it's harder to recover from mistakes if you're working with borrowed money. Too stressful for me personally! Save up the money for your first deal and start small -- you'll feel a higher level of achievement and won't be hurt as bad in your overall financial picture if you make a few mistakes.