HELOC As Down Payment For Rentals
Hi Everyone!
I just refinanced my duplex (owner opp) from an FHA to conventional to take advantage of lower interest rates and get rid of PMI. My goal is to acquire 1-2 residential multi family this year. Im considering using a HELOC on my duplex as funds to acquire next investments. Has anyone had experience using HELOC for a down payment? My concern is the cash flow from the investment would need to be directed to the HELOC payments. So no cash flow for some time (10+ years) and the HELOC is tied up so I can't re-use. What am I missing and/ or better strategies?