I’m new here and I would like some advice. I am able to pull $150,000 of equity from my house. I want to use it to buy 2 rental property with a down of 75k each.
We need a heck of a lot more info before we can offer any help, @Art Orozco. What are all of the numbers behind the 2 rentals you're considering? Will their cash flow be able to service the HELOC as well as the normal mortgage and still cash flow? How does this fit into your long term investing strategy?
Personally, I'd use $150k to purchase a small to mid sized MFR. HELOCs are great and lots of investors use them to get into rentals. The key is to structure it as short-term debt. Have a plan to quickly pay them off.
@Art Orozco yes it is, although you might want to think through the mechanics of paying off the HELOC. Can you refinance the two new properties to get cash back to pay it off? That is my preferred strategy with HELOCs.
@Art Orozco I'd do it only if they are rock solid deals that you could BRRRR out of in short order. I wouldn't use my homes equity for a long term hold.