Home Equity Loan as Down Payment?

[Hilary Hageman]

Is it foolish to use a Home Equity Line of Credit as a down payment on an investment property?  We have our primary residence payed off and have been approved for a line of credit on the house at 5.25% for 10 years.  The terms of the loan result in a pretty high monthly payment as you can imagine so our cash flow takes a hit there.  It would take us another 2-3 years to save the $20,000 or so we'd need for a down payment.  Any suggestions?

[Hilary Hageman]

@Joshua D. Woah, where did you find those terms?  My husband has a credit score of 800 so I'm thinking he'll be able to qualify for the best terms somewhere.

We're planning to buy and hold.  Looking at a duplex in a nicer area as our first rental investment.