Should I use a heloc to add another property?

[Jordan Alexander]

Need some advice.

Have 2 rentals I've purchased in the last year but my cash is only at 15k and I am going to have to start using hard money or conventional 20% down financing. But also my home has about 60k in equity so I've been thinking of ways to utilize that.

My good friend brings a property close to my others that's in really good shape, brick, one car garage, newer roof for 125k and rents currently at $1300 per month. He won't do seller financing because he needs money for some other family things. Really would like to find a way to make a deal because this is fairly turn key. Would you utilize a heloc for the 20% down and try to purchase a property like this with a conventional 30yr loan? 

Appreciate your thoughts and ideas!
 

[Nathan Gesner]

Quote from @Jordan Alexander:

HELOC is another method of borrowing money. If you borrow 20% from the HELOC and 80% from a lender, you are 100% financed, over-leveraged, and at risk.

I only recommend it if you can pay off the HELOC in 6-12 months. I'm even less likely to recommend it right now with an economy that is still at risk of going backwards.