How can I use the equity in my primary residence to get started?

[Bryan Galaz]

I have over $500k in equity with my primary residence and feel like I should be using it to get into real estate investing, but have no idea how to get started.  How can I use that equity to buy a rental property?

Thank you!

[Travis Biziorek]

Bryan, this is exactly how I got started.

I used some cash savings but largely leaned on my HELOC. The key here is to have a plan to pay that loan back.

I did this by utilizing the typical BRRRR method on homes in Detroit. I'd find off-market deals, do some cosmetic updates, and then refinance. All proceeds from the refi would go back to paying the HELOC.

Rinse/repeat...

My advice would be to start slow. If it goes well and you can stomach it, then scale up. And don't expect you'll get 100% of your capital out on each deal. It can definitely happen, but if you're leaving a bit of cash in each one that's much better than putting 25% down every time.

If you don't have a value-add strategy I don't see the point in using a HELOC. The whole idea is to use that money short-term.