How to use Heloc

A HELOC turns the idle equity in a home you already own into capital for your next deal.

A home equity line of credit lets you borrow against your equity up to a set limit and pay interest only on what you actually draw. Because it's revolving, it works like a reusable pool of cash — you can fund a down payment or a full purchase, pay the line back down, then draw on it again for the next one.

Example: you have $80,000 of usable equity and draw $40,000 for a down payment. You pay interest on that $40,000, not the entire line.

Takeaway: HELOCs usually carry a variable rate, so borrow only what a deal's cash flow can comfortably cover, and confirm your lender's terms and draw period before you count on the funds.