Understanding how a HELOC works

[Jalen Phillips]

I'm trying to gather more information about how a HELOC works. My wife and I are about to move back to Louisville, and are looking to purchase more investment properties once we have our primary residence secured and I've heard that a HELOC is a good way to avoid using our own money to purchase an investment property. Can anyone provide more insight on this strategy? Thanks in advance!!

[Conner Olsen]

Quote from @Jalen Phillips:

I'm trying to gather more information about how a HELOC works. My wife and I are about to move back to Louisville, and are looking to purchase more investment properties once we have our primary residence secured and I've heard that a HELOC is a good way to avoid using our own money to purchase an investment property. Can anyone provide more insight on this strategy? Thanks in advance!!

When using a HELOC for a down payment, factor in an increase in the adjustable interest rate. You don't want to buy something with the hope of cash flow to then be eaten away from a higher adjustable rate.