Heloc or new mortgage

[Thomas Sehon]

Hello all,

I have a paid off home in Colorado and am looking to purchase a new rental property that we will live in for 2-3 years in South Carolina. I am trying to understand if it makes more sense to take out a HELOC to buy the 2nd property in cash or just use that for the down payment and take out a traditional mortgage. Any wisdom would be appreciated.

Take care,

Tom 

[Thomas Sehon]

Thank you all for your wisdom, it seems consistent that the Heloc for a deposit only makes the most sense. 

Take care,

Tom