Lending (Heloc) questions

[Josh M.]

Hi, I have a few questions about using a Heloc and getting a loan for a second home (vacation that I do intend to stay in part of the year.)

Scenario:

• House value:250K
• Loan balance: 50K
• Equity: 200K

Goals/Plan:

• Get 10 STR properties. I would like to get a second home loan 1st (10%) down.
• Use a Heloc for the down payment and let the cash flow pay back the Heloc. 

Questions:

1. Should I get a Heloc for the max amount and then only pull what's needed for the 10% down payment (60K or so)?
2. How would getting a Heloc impact the 10% down loan?
3. Should the Heloc be obtained before filling out a loan app with a lender?
4. Where are some good places to get a Heloc?

Thank you for your help.

[John Underwood]

1. Yes, go ahead and get approved for max. Then just use what you need.

2. Shouldn't affect it. I have done this.

3. Probably 

4. Your local bank or credit union.