Los Angeles · Member since 2019 · 3 posts · 1 vote
I currently am approved through my lender for a Home Equity Line of Credit on my property. I have two big questions on how to move forward with the HELOC.
1. What is the best investment to shift my freed up capital into? Is is a rental property? A fund/syndication?
2. Once i take some of the equity from my house, what implications does it have on my credit score/ my ability to buy another property down the road?
That's great you freed up some cash trapped in your home. I did the same thing. What you do with the cash depends how hands-on you want to be. Some like to dive in and be active investors (landlords). Others prefer more passive investing like funds/syndications. Regarding your second question, I'm not exactly sure - I think your debt to income can affect your score.
All depends on what your investment goals are. You want to be in charge or do you want to sit back and collect mailbox money? Its a personal decision really.
Second question you pose, depends on your debt to income so that's another personal thing for you to decide.
End of the day, sounds like you are trying to position yourself for future opportunities... once you decide what that is, then you will clearly define what path to take in question 1. Hope this helps!