HELOC for first rental

[Noah Pearson]

Hello Everyone,

I know this post has been discussed before but I wanted to get some new perspective. We paid off our house and are completely debt free as of May of this year. We used a majority of our emergency fund to make that final payment. The emergency fund is now restocked with six months expenses and we want to continue to build that up and not use it for a down payment on a loan.

We are looking to buy our first rental property, preferably a single family home, in the near future. Would it be prudent to open up a HELOC for the purchase/rehab and pay back the balance, utilizing the BRRRR strategy?

Thank you,

Noah