All Forum Posts by: Adam Edwards

If you open a heloc now, use it as a checking and savings account.. hold 100% of your income in it, which drives down the balance fast, and decreases interest owed. Most helocs calculate interest on the average daily balance.. so everytime you put $ in, it recalculates... however, you'll have to pay your monthly expenses out of your heloc.. not a problem as long as your income is greater than your expenses. The bigger that spread, the better. This is also great for consolidating debt thus creating more cashflow :)

I'm in the process of my first deal.. weighing the purchase options. I'm putting up 50k and need another 60k.. looking at private money and paying interest, and getting a mortgage. When looking at either as possibilities, does anyone compare what you'd pay in interest  (private money), compared to closing costs ( mortgage) and decide based on that? 

Essentially.. my wife and I hold 100% of our income in the HELOC and pay our expenses from it.. you must be positive cashflow monthly for it to work. Interest only that decreases each month by driving down the principal :) and you're equity is liquid for whatever you want ( I only use it for assets:)

Essentially.. my wife and I hold 100% of our income in the HELOC and pay our expenses from it.. you must be positive cashflow monthly for it to work. Interest only that decreases each month by driving down the principal :) and you're equity is liquid for whatever you want ( I only use it for assets:)

I use a HELOC as an operating account and hold all my income and savings in it.. then disperse funds from it. By holding your income in the HELOC, it reduces the daily balance, which recalculates the "interest only" amount.. It's the most efficient way any way you look at it.. It's a 1st position, so I have no mortgage. I plan on using 35k for a down-payment on a triplex next month.. No closing costs either :)

I am closing on a 1st position heloc in the next week or so.. excited to use it to purchase a rental!

I'm looking for experienced people who have used either a 1st or 2nd lien HELOC to pay down principal on a mortgage