Is getting a heloc to buy my first investment property a bad idea

[Tom Hawkes]

I am looking to purchase my first buy and hold investment property. Is it a bad idea to take out a heloc on my personal residence to fund the down payment and closing cost?

[Jon Crosby]

@Tom Hawkes I think it depends on a lot of things to answer the question. I think HELOCs are a pretty good idea if you have a slam dunk BRRRR (Buy, Rehab, Rent, Refinance, Repeat) deal going on or even a great flip opportunity because it allows you to use the HELOC as a true revolving line of credit that you can use, pay back and and rinse and repeat for the next home (ideally). However using it as the long term down and closing it's basically just like using it as a 2nd on your mortgage which as you know didn't go over so well for many people back in in 2007/2008.

Ideally you would want to have the down in cash available and use the HELOC for rehab and/our emergency funds...but I'm somewhat conservative with debt and numbers in general so take what you will from that. :)

Best of luck to you though! 

Cheers!