Not sure

[Jon Mccarthy]

Not sure if this is the right place for this but I am looking to get some insight or help on this. Please tell me if this is smart or not.

I want to pull out a HELO loan and pay off our bills so I can consolidate everything, it will be easier to start real estate investing for me what do you think. It would boost my credit and pay off a lot of bills. Or should I pull a loan out find a property that pays well every month and use that money to pay off bills.

[Tom Spaeth]

Wow such a tough question to really answer. There are so many things that enter into this. With your current debts will you qualify for a mortgage. And do you have the money required as a down payment. It's hard to bet on the income from rentals to pay off the debts. And you also have to watch Helocs. As long as you can pay down the Heloc prior to the interest rate going up you would be good. You could also look at a cash out refi. Putting the debt into the house and financing it over 30 years. But then you have to be sure you don't get back into debt again.

I like Cheyenne. I haven't invested there yet. But I am considering it. The house prices are a lot better there then down here in Denver.