Paying down HELOC or principal on properties

[Kim Stofan]

I was hoping some experienced investors could weigh in on something my husband and I have been discussing. We took out a HELOC on our primary residence to pay for some home improvement projects and to use as down payments for rental properties. The line is 100K and we have it pretty much maxed out. The interest rate is around 6% but is variable. We have purchased three out of state buy and hold properties that cash flow about $200 per month. Our real estate goal (for now) is to have a portfolio of 10 properties. We are hoping to have these properties free and clear as soon as possible.

I would like to use the cash flow to pay down the principal of the properties and snowball it. My husband feels like we should use the cash flow to pay down the HELOC. He believes it will allow us to buy more properties sooner. I would prefer to keep the business money and our household money separate. Does anyone have soon input/ advise on this matter? Thanks!