Only use it on a rental as the minimum DP. The opportunity vale of cash will kill your cash flow if you have too much equity in a rental.
Mortgage rates at 4-5%, opportunity value of cash to investors 10%. Every dollar sitting as dead equity is losing 5% return or conversely sucking an additional 5% of your cash flow from the property.
When you buy all cash, having too much equity, you are basically buying your cash flow and the property itself is producing nothing. The property is actually a liability as your cash could earn better return without the PITA of owning actual brick and mortor.
@Mark Coleman Sorry for the late response. I just saw this. Yes I meant refinance the property with a traditional mortgage to pay back the equity line. That allows you reuse the line. Think of the equity line like a credit card. You use it, pay it off and go shopping again.
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