?Opinions on tapping equity

[Damien C.]

Hey there everybody. I'm interested in hearing some opinions on different methods of tapping equity to acquire investment property.

I purchased my primary residence in 2011 with 20% down and a 30-year fixed mortgage at 5%. A year or two later I refinanced at 3.5%. The refinance worked out nicely as my monthly expenses dropped by hundreds of dollars. In the past couple years, however, my property's value has jumped up approximately 80-95K.

My plan going forward is to buy and hold multiple investment properties (using leverage, most likely). I currently have only one mortgage.

A few weeks ago, I started a HELCO thread, and I got some great insights on how different investors have used lines of credit to reach their goals.

I'd appreciate any thoughts on the best ways to tap home equity in general. If I do a cash-out refinanced, for example, I would do so at a higher interest rate, which does not make much sense to me (although I imagine there might be some advantages of which I am unaware). I'm curious if you folks have any opinions on using a home equity loan versus a HELCO (versus perhaps another method I have not considered). Furthermore, I'd be interested to hear if using a equity loan or a HELCO for a down payment is problematic in terms of securing a fixed mortgage for the remaining 75-80%.

thx v much!

[Daniel Foster]

I have purchased 2 investment properties and I am about to purchase my third, all with a 20% down payment funded with a HELOC from my primary home. There are still banks that will lend up to 100% LTV for about 5% interest. Good luck!