Please Explain HELOC to Purchase First Property
So my wife and I have a significant amount of equity in our home. I am interested in using the equity via a HELOC to purchase my first rental property. I am curious as to how this process works and am looking for someone to explain in a fair amount of detail.
1. If I go get a HELOC for say $100k. I realize that as soon as I make a draw I have to start paying the interest. So let's say I draw the full $100k and take it to go buy a property. Once I get the property and rehab it/rent it out, how do I put a mortgage on that rental property and get out of/pay off the HELOC on my primary residence? I rather have only 1 mortgage on my primary residence, so my goal would be to get the HELOC on the primary cleared as soon as possible.
Is there a way that HELOCs are rolled into Mortgages? Just looking for some explanation. Thanks in advance!