How to convince my parents to use a HELOC

[Sean Ade]

Hey BP

I could use some help trying to convince my parents investing in real estate is a smart decision. I found out they have a ton of equity in their house and could easily take out a HELOC for a downpayment on a rental property, and still keep their house with a manageable payment after the HELOC is taken out. They live in Raleigh NC which has a great college scene, a growing market, and tons of new construction. They've never invested in real estate before and are worried about losing money.

What's the best way to convince them to take a risk on the market and look for a buy and hold rental property? 

Thanks! 

[Caleb Heimsoth]

@Sean Ade. I would say if they don't want to let them be. I know people with a lot of equity in a house, and they do nothing with it. That's the right call for a primary residence in most cases (in my opinion). A HELOC is short term money, not long term money