Pay off personal home to invest with heloc

[Houssain Alderawy]

Hello Bigger pockets fam.

I am seeking some investing advice on how to purchase my second rental property.

Currently I have a free and clear rental property that's worth about 120k. My primary residence is worth about 200k with a 95k balance left. After I cash out refi my rental I would have about 90k cash to purchase my next brrrr with. Should i use that 90k cash to pay off my primary residence which I then could get a heloc on of about 160k(80% of 200=160). Now I will have extra money every month from not paying a personal mortgage and will have enough cash in my heloc to have 2 brrrr's going at once and so on. Any feed back would be greatly appreciated thank you very much 🙏🙏 .

[David M.]

@Houssain Alderawy

If you qualify... it’s the same but different as cash out hloc your primary home with the hloc as 1st lien position. It will just start with $95k debt with $160k limit... think of it that way... then refi your rental for more cash if you need it.

Basically you are cashing out your proper as much as possible to do another deal is what I am hearing. In my above example, it just depends on how much cash you need and where you want the debt...

Good luck