Updated almost 5 years ago on . Most recent reply
Down Payment: Cash, HELOC, or both?
Hello BP community! I just put an offer in on a nice quadplex. Asking price $270k, down payment of $67,500, monthly cashflow should be $699 with a 11.2% COC ROI so numbers look good. I am torn on how to handle the down payment. I have another rental property that has enough equity to cover it fully, but I would be pulling the max. I could also pay cash, but with my job I only work every 3/4months when I go on deployment so I think it would be wise to keep more cash on hand for emergencies or if a great deal were to pop up. For those of you who have used equity for a down payment what are the pros/cons? Would it be better to use cash or a HELOC, or maybe a combination of both for this down payment. Any advice is welcome!