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Updated over 4 years ago on . Most recent reply

Using a HELOC and paying it back
Hi. I'm rather new to real estate investing and looking at purchasing my second property. I live in San Diego and it's expensive here. I have a few questions about using a HELOC to purchase an investment property. Besides paying more than the interest, what are other strategies to pay off the credit borrowed on the HELOC as soon as possible? I thought of doing a cash out refinance on my primary residence and use it to pay the HELOC bill, but would that be a smart move?
Most Popular Reply

To answer your question about paying it down faster - treat the HELOC as your checking account. Have your W2 checks deposited there, bills and credit cards paid out. If you have positive cash flow each month from the other rental, have that deposited there too. Keeping that daily balance on the HELOC as low as possible will drive it payoff much faster.