Can you use a Helco to buy an investment property

[Cory Ray]

Can you use a Helco to buy an investment property in ohio. If so what would that look like. Being a Helco and I'd be buying a property and adding debt to the helco.

[Ko Kashiwagi]

Hi Cory,

Yes, you can use your HELOC to buy a property cash or as part of down payment. As you mentioned you'd be financing your property with debt, so it's very important to have a clear exit strategy. Buy a buy & hold with no value add with a HELOC would be a risky move unless you have the income to pay down the HELOC. For instance, you can use the HELOC to buy a property "cash" and then add value to refinance later. When you do the cash out refinance, you can use to cash out proceeds to pay down the HELOC to zero.