Is this a good HELOC rate and terms?

[David DeRiso]

Hi BP!

(First post BTW)

I am looking to buy my first investment property. I am currently shopping around HELOCS in order to fund this. I own my primary residence free and clear and have found a HELOC that seems good.

$190 appraisal fee

80% LTV

Rate is prime no margin

5 year draw w interest only payments then balloon payment due (or renegotiation)

No other fees

I'm hoping to BRRRR multi family properties in St. Louis so hopefully I will be able to refinance properties to traditional mortgages and not get bit in the butt by the balloon.

Just want to make sure this is a good way to go.

Thanks!