HELOC for downpayment on rental
Hey guys, I was just wondering if anyone thinks its a good idea to place a down payment and rehab a single family home for a rental property using a HELOC on my home? I bought my house three years ago and rehabbed it a lot. We owe 169,000 and its worth around 250,000. Should I use a HELOC to place a down payment and rehab another house in my neighborhood. My neighborhood is about a B class but there are several homes in my neighborhood that are foreclosed and distressed, 3/2, and I think buying one, rehabbing and renting it out could be a good idea I'm just scared to have to pay back a heloc AND the mortgage on the rental if it goes vacant for some time not to mention my own mortgage. I make about 70k plus another random 20k from side jobs and my wife makes about 40k. Thanks for reading, any help is much appreciated thanks.
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