Hello, I was wondering if Helocs are typically used for Buy and Hold or Flips? I am asking because from what I am gathering you want to pay Helocs off rather quickly. So it wouldn’t make sense to use it as a down payment on another property then right? So it would be better to use that as a flip and grow your capital that way? Am I on the right track? thanks!
Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
5y
I would say either one. With the HELOC, you can pay it down quickly or slowly, the rate isn't that bad and the Fed isn't raising them any time soon, despite them being variable usually. With a HELOC you can also go for one that is interest-only, which would lower your payment and increase your overall cash-on-cash return.
Joesph thank you for the reply! The only reason I asked that was because in the analysis you would have to account for two loans? Which kind of threw me off if I were to do a buy and hold. Thanks again!