Need advice on regards to getting a HELOC

[Arthur Davis]

Hello,

My name is Arthur Davis and just wanted to ask some further questions about starting a HELOC. While watching Youtube I've found out that a lot of people utilize A HELOC for Debt Consolidation or Personal items. I would have to agree that doing this is a bad idea and potentially debt is now attached to your home as collateral. Well in my case I Currently own an Investment property in Colorado( Purchased while I was in the military) outside of a military base and the property has substantially grown in price since purchasing in 2013. I Purchased the home at 172k and they currently sell for at 270-285k. I have about 130k in equity and am looking at potentially getting a HELOC to Purchase my next home. I rent out this property in Colorado for 1600 a month and my mortgage is around 1k. What I'm inquiring about is would it be smart to pull 50k for a down payment for my next home via HELOC? While jotting down my budget I see that the profit I make for rent could potentially pay the monthly payment for the HELOC. If possible can everyone give me insight on this financial endeavor that I'm prospecting?

Thanks for taking the time to review,

Arthur Davis