Heloc on Primary residence for Rental

[Eric Frye]

Hey BP, I am looking to get into REI and have been doing some research on getting a Heloc on my primary residence. I do have a good amount of equity in my current home, but I am more concerned on the details of after I get the Heloc and buy a rental property. Once I have a rental property and it is cash flowing, How can I go about paying back the Heloc? Are there any tax implications that I should be aware of? If I do have an LLC isn't that looked at as taxable income? If I don't have an LLC is it still looked at the same way? Is there any other information I should know regarding paying back Heloc from rental property? Also if it helps I live in NJ. Any information and feedback would much appreciated.
-Thank You

[John Teachout]

Originally posted by @Andrew Thomas:

Originally posted by @John Teachout:

As a fwiw, our local bank charges prime rate +0% for a HELOC. And no closing costs.

John, do you know if your local bank is still offering this? I'm NW of ATL, and would be interested in chatting with them if so.

A few months ago I inquired with them about increasing our HELOC amount. They still do prime plus zero but now have a minimum of 4%. Since we were grandfathered in, we're still paying the current prime of 3.25% on our balance. They have branches in the area in Pike, Spalding, Upson and Lamar Counties. So I don't think they have anything in your area. It's United Bank. (Accessunited.com)