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Updated almost 5 years ago on . Most recent reply
To HELOC or not to HELOC
Hi all!
Newbie REI here. Currently in the stage of analyzing deals and figuring out my best options for financing. I'm looking to purchase a multi-family property in the 100k-150k range. I do have enough for a 20% down payment, but also own my primary residence free and clear (390k estimate per zillow) and could obtain a HELOC to cover the entire purchase price. I'm trying to decide if using a HELOC is the right decision for me. I have some concerns regarding the housing market and my home value decreasing over the next year. My goal is to have a cash flowing rental property and to build a portfolio of rental properties moving forward. Should I pay the 20% out of pocket and obtain a conventional loan? Use a HELOC for 20% down and obtain a conventional loan for the rest? Use the HELOC for the entire purchase price? Any thoughts would be greatly appreciated!