Using a line of credit, Good or Bad....

[Steven Lacy]

I have a line of credit and would like to know if it is smart to use this line of credit for a down payment on my first investment property?

[Aaron Montague]

@Steven Lacy

Always do the math!!

If the property you are looking at is going to pay you $210/month and 17% Cash on Cash, AWESOME!!

... unless you have to spend the first 10 years paying $230/month against the line of credit you used to make the down payment.

Where the money comes from is not important.  The rate and the term are the big deal.

If the numbers still work while you pay down the line of credit, yes, it is a good idea.  If those extra payments are going to move the numbers below your minimum investment criteria, then no, it is a poor way of funding a down payment.