HELOC For Investment

[Jeffrey Swanson]

I am looking to get my first investment property. I really like the idea of doing a BRRRR and I was thinking of using a HELOC on my current home to finance the down payment and the rehab, then pulling out as much as I can in a refinance to pay my HELOC off. Is there anyone out there who had used a HELOC to fund an investment property? any tips? and pitfalls I should be aware of? Thanks in advance for the help

[Ron H.]

I regularly use a HELOC to purchase BRRRR properties. Best advice is to make sure you get as high a credit limit as you would ever need. I signed up for too low of a limit. With rising house pricing I need a higher limit. The only way to do this is to reapply for full amount i need and pay mortgage taxes again on the total.