Primary Home equity?

[Sastry Konduri]

Hey RE gurus,

Is it a good idea to buy a investment property by taking a home equity from primary home?

What are the pros and cons? A few links to some blog posts will also help.

Thanks!

[Scott Weaner]

I did this for the down payment on one property, and a partial down payment on another. The Pros, to me, is less out of pocket. The cons would be that your primary home could be at risk.

As I do not need the cash flow for everyday expenses, all money goes right back into the HELOC. I can then pull from it again should I need an expensive repair...or another down payment!