Trying to understand Home Equity Loan better

[Paige Waggy]

I am verrryyy new to all this real estate investing stuff and am trying to figure it out! So, I have started researching Home Equity Loans in order to get started in all of this. I am getting a little confused on the process of using this type of loan. Okay, so do you use this loan for the down payment on the property you want to purchase? In order to do this, are you taking out a mortgage on this house? If so, how will I get approved for a second mortgage on top of the one I already have on my house? And then when you refinance your rehabbed/purchased house, you use that equity to get another home equity loan to pay off your first one? Or are you using your rental income to pay off the home equity loan? Any information would be greatly appreciated!

[Paige Waggy]

Great, thank you for that information!