Using HELOC vs Straight Up Financing. What's better?

[Alex B.]

As a newbie investor, I'm continuing to learn from everyone here. Question came up, as I'm looking to get the cash out of my house that is paid off to sponsor my next rental property investment. Is it considered better to take out HELOC loan out of my primary house, or is it better to obtain regular financing with 20% down given today's economy and interest rates? I'm leaning towards pulling up funds via HELOC, but what is considered the "best practice" here on BiggerPockets? Curious to learn from all of you.

[Nicole Heasley Beitenman]

There's no "better" method. It comes down to numbers and long-term goals. How fast do you want to grow? How long will it take you to save up each down payment? Do you plan on using equity from one deal to buy the next deal, or will you be buying turnkey?