Beginner financing with a HELOC

[Ethan Adams]

I’m just getting started, looking for multi family rentals to buy and hold. House hacking is not an option but I can get a nice 30 year fixed at roughly 4% through my credit union with a 25% down payment.

In order to handle the DP, my plan was to open a HELOC on my residence and use that. My credit union also offers this and has a promo where if I take $20,000 as a disbursement immediately, they cover closing costs.

My question is this - I don’t have a property yet to purchase and it could be a few weeks or months to find the right one. Is it smart to take the $20,000 and start paying interest on it for that amount of time?

The CC would be a few hundred dollars according to the bank.

Thanks!