Down payment cash or heloc?

[Brad Hasseler]

I would like your opinion. If you have 20k cash and 30k in a HELOC what would you use for a downpayment?

My thought is pay the downpayment with the HELOC and keep the cash as a reserve for needed repairs.

[J Torres]

Hey @Brad Hasseler,

Currently I'm using a HELOC to help fund the downpayment for my next multifamily. If the numbers tell you that you'll make more then what the payment for the HELOC is (plus a little more) then in my view it's a good thing to do. Now keep in mind that those dang things are variable so I go in with the intention of paying that sucker off just in case those rates keep going up but have a backup plan. Use conservative numbers on your estimates and if it still pays off then why not?

Cash is king so the more you have with you the more power you have. Leverage those assets but be conservative I say.