Hi I am just getting into the investment/cash flow industry and I was wondering what everyones thoughts were on pulling equity from your primary home to purchase a property. Is a HELOC a good way to go? any advice would be great! thanks
HELOC is ideal to access your cash. You only pay interest on the amount used and you can use it on a ongoing bases. Using it as a DP on a income propery you can deposit your rent checks directly into your HELOC account and withdraw your expenses from the same. When it is paid down enough you buy your next property.
thank you for the quick and straight forward reply!(as silly of a question this is i am asking it) When getting a heloc is it a good idea to shiop around for best interest rate just like a regular home loan?
Absolutely. It is a essential part of wise business management. Best rate and largest % of equity available. You don't need to use it all but the maximum amount available is a bonus. You should be able to get approval for minimum 80% of your equity. You basicly become your own bank.
Thank you so much. If there is any other insight you feel that would help me (since im just getting into this) I would really appreciate it.
See my post a few months back. Has some good info in it.