I’m looking to buy an investment property using the equity I gained from my first home. I’m pretty much up $200k. Any advice or suggestions? Is this a smart move?
HELOCs are definitely best as a short term since rates adjust but a lot of investors still use them to access equity and get into cash flowing deals. The key is making sure the rental covers the extra debt and you have an exit plan (refi into fixed debt, pay down and etc.).
It would probably be a 2 year investment with the possibility of equity growth on where my second purchase would be. So I guess it’s not a short term flip. Thank you.