Updated almost 5 years ago on . Most recent reply
How to invest my HELOC properly
as you know there are many ways to finance your first property. Whether you are looking to flip or buy and hold the methods are abundant. My wife and I own our home with approximately 4.5 years remaining on our mortgage. We recently obtained a home equity line in the amount of 140K. Since last spring I have been diligent about my homework, have zeroed in on an area I would like to invest and feel as if we are ready to make some offers. I have a fantastic realtor and a contractor who I trust. The question becomes how to be very strategic about putting the HELOC to work without over-extending ourselves or depleting our cash position. Cash saved besides emergency funds is approximately 35k and we are looking in an area where 3/2 SFh are priced in the 130k to 175k range and more than likely will see an upside in appreciation. BRRRR'ing (haha) a property is tight in this area and will prove to be difficult but not impossible. There are plenty of properties that are nearly turn-key but not 100%. On another note, the HELOC is a floating 2.25% with the potential to increase. Considering the times I feel confident it will not skyrocket any time soon.
So how would you put a HELOC to work?