Using Equity Line for DP
What are the negatives concerning using an already established line of credit to generate a down payment for a buy and hold rental?
This is assuming, of course, that I'm buying right and that the property will cash flow and appreciate. We have one rental in our college town already.
If your rents cover your mortgage, expenses and your line of credit interest, and still cash flow, aren't you set?
Hope that was clear. Thanks in advance.