Pay cash or pay off HELOC & use that for downpayment next house?

2 Replies

We have cash from a rental house we sold and want to use to purchase another rental. We also have a HELOC on our primary open and owe about the same amount we made on our rental. My question is - is it better to use the cash to put down on a new rental or pay off the HELOC and use the HELOC to put down on the house?

Just not sure if either one is better when we go to get a new mortgage. 

Originally posted by @Cristina Mator :

We have cash from a rental house we sold and want to use to purchase another rental. We also have a HELOC on our primary open and owe about the same amount we made on our rental. My question is - is it better to use the cash to put down on a new rental or pay off the HELOC and use the HELOC to put down on the house?

Just not sure if either one is better when we go to get a new mortgage. 

 Is the new purchase going to be a fix and flip or buy and hold?