Updated over 3 years ago on . Most recent reply
HELOC Recommendations First Time
Hello, my wife and I have about 150k equity in our home are wanting to do a HELOC and use that to buy some STRs. I have a few questions since this is my first time doing this and research online seems to be pretty basic information but hopefully BP can help me with some clarity. My questions are:
What are some things to look out for when doing a HELOC? Risks, additional fees, or unexpected things, etc.
What types of terms are more investor friendly? I've seen different length draw periods and rates differ.
Our plan is to use the HELOC to put 20% down, do some light renovation, and fill the property with everything needed for a STR, then roll that into a standard mortgage and pull our money back out to pay off the HELOC. Is this logic sound or do I need to reevaluate this strategy?
Thanks for any and all input.