Los Angeles · Member since 2019 · 5 posts · 0 votes
My current home is recently on the market in Los Angeles though it is a unique property that I'm considering renting instead. I would want to use a HELOC to help purchase another property we would move to.
I have a small 80k HELOC currently at a ~6% rate.
My primary loan on the current house is also a 7 year ARM which will increase at the end of 2019.
I have roughly $300k in equity in the current home.
The current home has a finished and permitted standalone 224 sqft office building in the back yard which is nice.
I would look for the bank to increase the HELOC into a majority of the equity.
A place I am targeting is almost 1 acre nearby and has several house hacking opportunities.
Has anyone done this and are there any considerations besides the potential rise in interest rate on the HELOC?