Using HELOC as the down payment for multiplex

[Thushara Gunasinghe]

I have about 150K in my HELOC and planing on using as my down payment for multiplex. My Concern is I may not be able to pay mortgage and HELOC from cash flow which is going to be very low due to price of houses in my market. I really appreciate very experienced community can help me to understand the best way to invest for my multiplex.

Thanks

Thushara.

[Eric Nelson]

Always have to make sure the numbers work.

You will just have to account for 2 loan payments. HELOC and commercial mortgage.

The nice thing on the HELOC is it will be an interest only loan. But, make sure you add a little for principle pay down too. If your minimum payment is $1200, budget for $1500. Then if you're short, just pay $1200 .

As long as the numbers work you are good. As you get the HELOC paid off, they'll get even better.

good luck