Updated about 7 years ago on . Most recent reply
How to use HELOC to buy rental property?
Hi, I’m interested to learn of it is possible to use HELOC to pay the 20% down payment (60k) for a rental property that cash flows, with my fully paid off primary residence (220k)? How does it work?
Thank you!!!
Most Popular Reply
John Warren
Pro Member
- Real Estate Broker
- 3412 S. Harlem Avenue Riverside, IL 60546
- 5,096
- Votes |
- 6,054
- Posts
@Stepheni Larson either option works, but I would use the HELOC. The interest is tax deductible (check with your CPA) and you retain your cash. You might even be able to deploy the cash in a few more months to another property!