HELOC or refinance to purchase our first rental property ???

[Jonathan Rosado]

Hello all, My wife and I would like to purchase our first rental property (triplex). So my question is... Should we refinance or take out a HELOC to purchase our first rental ? Also the property will go under one of our names not both. If that matters. Thank you in advance!

[Christian Nachtrieb]

I would only recommend doing a HELOC (as down payment) if you have a plan in place for getting that money back out of the deal, such as BRRRR or flip or something. Rates are on the rise, and you don't want to be stuck paying those interest payments with no exit strategy.