Is Using a HELOC to Fund My First Rental Property Too Risky?

[Chavin Peebles]

Hey everyone, I’m new to real estate investing and looking to purchase my first long-term rental. I’ve owned my primary residence for 4 years and currently have around $100K in equity. The main goal is to build long-term wealth through rental income and eventually pass that on to my kids.

I’m considering using a HELOC to either cover the down payment or potentially purchase a property outright, but I’m unsure if that’s the smartest or safest move for a first investment.

Would appreciate input on:

• Is using a HELOC too risky for a first-time investor?
• Have you used home equity to fund a rental, and what was your experience?
• Would you recommend starting with a duplex or single-family rental?
• If you could go back to your first property—what would you do differently?

I’ve got strong credit, stable income, and I’m committed to taking action—but I want to make sure I’m moving strategically. Appreciate any insights you can share.