HELOCs and Rental Property

[Anthony Mikolich]

Hello All,

    I am about to turn my primary residence of the last 23 years into a rental property. I am hiring a property manager and moving out of state. I have substantial equity in the house and am looking at a very lucrative cash flow opportunity. This is my initial foray into the real estate world. 

I plan on doing buy and hold rentals in the new location. I plan to start slow and grow organically. My question is....if I take out a HELOC now what will happen when my property "goes rental"? Will the bank have to know about this? Will they even care?

I'm looking to play it straight and use this HELOC for seed money in the new location. Thanks in advance!!!

[Rosston Smith]

It should all be fine with the bank. Also, great thoughts on converting your primary into a rental AND utilizing the equity!