Using home equity to buy rental property or 2nd residence
About using home equity to purchase another home...
I fully own my home, no mortgage. I live in Orange County, CA and my home is worth $620k+
We are thinking of relocating and curious about using the equity in our home to purchase a new residence. I'm guessing a HELOC would get us the cash? The loan would be for 300-350k.
Is this possible? Do people do this? I heard there may be a clause that doesn’t allow me to move into another residence after receiving the loan? I’d like to rent out my current home - not sure on renting the whole house out or rent rooms (allowing my brother to rent a room and keep an eye on the house).
Any thoughts/risks/tips, or pros and cons would be helpful about using equity to purchase a home.
Thank you