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Updated over 7 years ago,
First rental property
I am brand new here to bigger pockets although I have been listening to the podcast for a few months now. My question is pretty basic. My home is paid off (have full equity). Is it a smart/good idea to use a home equity loan against my primary residence to purchase a rental property? If so should I only use home equity for the downpayment and mortage the rest, keeping equity in my primary home available for a second rental come time? I basically am looking for advice on how to best utilize the equity in my free and clear home. I have purchased and flipped 2 houses within the past 10 months in Philadelphia (just getting started) and using my home equity for that made me very uncomfortable (used hard money). I feel that using a home equity loan on my primary house may be a good idea for a rental being I would need no money out of pocket. Appreciate any feed back. Thanks!