HELOC or Traditional Loan for first property?

[Jason Ngo]

I am looking to buy another property for $350k and rent out my current house for $2400/mo. The bank has approved me for a HELOC of $100k with 4.5% variable interest and the origInal plan was to use the heloc to put the 20% down on the new house. But now I was wondering if I should just get One conventional loan to avoid having two loans (HELOC and conventional) and save the HELOC for another rental property. Of course this plan would require me to use $70k (20%) of my money from stocks as a down payment instead of using the heloc. Any input would be greatly appreciated. I think I’m on the right track but just want some confirmation and guidance please! Also this is my first post. Thanks!!

[Rudy Vazquez]

@Jason Ngo

Jason, first off, I'm always for fixed rate. And Real Estate out paces stock, hands down. 

So, if you have enough equity, I would refinance for fixed rate, and use it towards the other property. 

Ensure to get a good CPA that deals in income properties, because you can write off depreciation costs etc., also in a year or so you can upgrade if you wish, and do 1031 exchange.

Anyhow, hope this helps,

-Rudy Vazquez