Heloc on my Personal Property

[Kyle Howe]

I plan on doing a HELOC on my personal property. Since you can borrow up to 80% of your equity it'll be around 43k. My plan is to use part of the money for the down payment on a duplex/triplex. In my area the down payment will be around 10-15k.

If anyone have thoughts on this strategy or advice I’d really appreciate the input!

[Brian G.]

@Kyle Howe many use that strategy and/or a cash-out refi to purchase investment property. Ideally, the duplex/triplex will be profitable even after factoring in the higher mortgage payment on your primary. If you can afford the new higher mortgage payment and you can buy a profitable duplex/triplex with the proceeds it can work. Just make sure you mitigate some of the risk by having plenty of liquidity (ie reserves). This advice always holds true. There is one primary reason businesses fail. A lack of liquidity (ie cash!).