Line of Credit vs Personal Savings

[Matt Giordano]

Hi everyone

1st time rental property investors.

After much research our next step is trying to determine which option would be best for funding the 1st deal!

Scenario /

1. We own a mortgage free property that has at least 200k in equity. This was an inheritance and all we pay is our taxes.

We were considering pulling out a Line of credit to begin our investing goals

2. We do have enough funds in our personal savings account to at least purchase and rehab a property all In at say 80k

Hoping you could provide some advice to help us with our decision

Much appreciated

Matt & Anna

[Coley Mitchell]

HELOCs are a great way to get started. That is what I use for my REI. For comparative purposes, I was able to get one up to 90% LTV that was interest only for first 6 months then 4% thereafter. Given that you own your home outright im sure there is no need to do the full 90%, but even if you just get $100K you can do alot of damage with that right out of the gate. Good luck!