HELOC-to pay off or leave it
Hi, Recently purchased an investment deal, used 20% cash, 20% HELOC, which allows me to have a positive cash flow.
Heloc rate is 7.25 for the first year which is almost the same as my mortgage rate. second year it goes to 8+ %.
Original plan was to pay off the heloc quickly after closing ?
Should I pay down the heloc or leave it to rebuild my reserve?
Heloc interest rate may potentially put me into negative cash flow. If its sustainable, what is the best financially in the long term.
I am using HELOC for the first time.
Do I get any tax benefits from having to pay those interests through the heloc account. Is that true? I did not do so because I had originally intended to pay it off quickly after closing and
thanks,