For a 1st Position HELOC, it becomes your mortgage. So all of my income goes toward paying down the principle. As it gets paid down I build equity. Since it is a HELOC. I can draw money from the equity to use for anything I want. My plan is draw equity to purchase a second home, then a third and fourth.
I think that is a very smart idea. We used the debt snowball to pay off 10 houses and then borrowed against them at 50% DTI and bought a STR. Wish I'd gotten a line instead of the portfolio loan, as we could draw off it. Thanks for your response.