Pay off loc loan or buy another property?
I took out a loc on my primary home to buy a single family home for a rental. (My home is paid for) The term is ten years and the rate is variable, currently 3.4%. Should I pay it off in ten years using the incoming rent or pay only the interest and instead save up the rent to help buy another rental property? I have $30k equity in the rental . Thanks in advance.
Most Popular Reply
Since it's a line of credit, why not just park the money there until a deal comes along and evaluate then? Essentially, your HELOC is liquid as long as you are still in the draw period, and you are saving yourself some interest payments at a rate far above what you would get as "cash" in the bank.