Using a HELOC for downpayment

1 Reply

When you guys use a HELOC on your primary residence to fund a down payment onto a rental

Property. Do you pay off your HELOC as fast as possible to use it again on another property? Or what is the beat strategy on that. Thanks

Borrowing from the equity of you primary home is very serious @Jesse Unrath Go carefully. If you live in an area where appreciation is steady, like Crazy California, then maybe. Yes pay the HELOC as soon as possible, as you are putting your family home at risk, if the market fluctuates in the wrong direction. If one has a plan on how to pay off the HELOC, then maybe. Do you have enough reserves for the unexpected? If not, one takes on more debt obligations.

While thinking this through, live below your means and put aside funds for investing. 

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