Buying an Investment Property - What do you think?

[Chris Olson]

I have a ton of equity in my primary home and I plan to stay here for another 12 to 15 years. My current loan is around 100K at 2.75% interest and estimated value of 650K. My payoff would be in 2021. 

I have an opportunity to buy another underpriced investment property which should bring me 5% to 8% cash on cash return, cover expenses and then some, and the ability to write off my travel expenses on a quarterly basis. The property is located in a great area and will be professionally managed. 

My plan is to use my HELOC to secure the down payment, then refinance the HELOC (6.25%) and prime into one for a new balance of 350K at 4.25% ish. I would like to take additional cash out (150K) for liquid savings. This option would also reduce my monthly mortgage payment by about $600.00 a month.

I am in this for the long haul. 

What do you think?