HELOC as downpayment for first investment

[Amanda Berg]

Thoughts on using a HELOC to invest in 1st property rather than using savings?

Has anyone done this?

I have about 200k in my current house.

I have 100k in the stock market making 7%.

I was thinking, why not use a HELOC to take out about 30K to invest in my first property and pay it back over the next 12 months.

Thoughts?

[Sara C.]

Hey Amanda! 

This is exactly what I did to purchase my first deal. I took out a HELOC on my primary home, and used it for the downpayment for traditional financing as well as the renovation costs. It worked out great!

- Sara