Heloc = Yay or Nay

[Jason Schimer]

I have a property that is free and clear and I want to pull money out of it so I can reinvest just like the rest of us. Here's the thing, do I pull the money out using a conventional loan or do I go the HELOC route. I've hear power arguments with both but I'm here to hear bigger pockets side of it.

[Garen T.]

I pulled $150K out of a rental last year for investment elsewhere. The intention is for that money to do REALLY well and provide an exponential return in 2018. I chose HELOC for 2 simple reasons.

1. Much easier to get. The credit union I used had me approved in 2 days. Super easy. Since it was investment property and not primary, they were making it harder to take conventional funds.

2. Much cheaper. I'm paying $500 interest only per month. No principle payment, no extra costs, just simple interest. This made it appealing as I could choose how much to pay above that in principle. Since the property brings in $1800 in rent each month, I have access to the $150K and I'm still making over $1000 per month. 

Still learning.