Updated over 6 years ago on . Most recent reply
Should we use our HELOC to fund 1st short term rental property?
Hi all! I have finally piqued my husband's interest in RE investing and am doing my due diligence of reading, research and podcast listening. I have a bad habit of rushing into things sometimes and my husband is the exact opposite. I want to be sure we go about this the right way (as much as possible anyways).
We are interested in two things at the moment - acquiring a long term rental property near our home and then a short term vacation property in the mountains of my state (where I grew up). Nothing fancy for either - just something to get our feet wet and produce some cash flow.
My question is should we use money out of our HELOC to fund one or both down payments? What are advantages/disadvantages to doing this? Or should we put our heads down and save for said down payments which could take a few years? I am a local real estate broker and know in my gut the market is going to turn soon in our area so don't know if this is happening at the worst time or not. Would appreciate any feedback or thoughts from seasoned pros! :)
Side Note: I am a local real estate broker (former interior designer) who is used to HUSTLING and working hard for my clients and in building my personal business. I had a duh moment recently when I realized I have been helping investors here and there for over 4 years now when all along, I should have been getting in the game. :(