HELOC vs HELOAN

[Kyle Tant]

I'm looking to buy my second investment property using either a HELOC or HELOAN and would like advice on which route to take. I have an opportunity to buy a single family home right next to my first rental but don't have the cash for a down payment. I would also like to acquire more properties in the future so I want something to keep my options open.

[Erik Estrada]

Quote from @Kyle Tant:

I'm looking to buy my second investment property using either a HELOC or HELOAN and would like advice on which route to take. I have an opportunity to buy a single family home right next to my first rental but don't have the cash for a down payment. I would also like to acquire more properties in the future so I want something to keep my options open.

If the goal is to payoff the HELOC balance asap and keep it open to buy more real estate, go with a HELOC.

If the goal is to pay the balance off over time with fixed monthly payments, go with a the HELOAN.