Using HELOC to House Hack

[Tyler Santo]

Hello,

I currently live in a single family home and also own a rental condo (cash flowing ~$300 per month). I am looking to buy a duplex in my area and house hack while also renting out the single family home I currently live in (did some work over the last year on the home). I don't have the cash ready to do it, but I have access to about $49K in the form of a HELOC on my home. I already refinanced without getting my money out (made a mistake here although lowered my interest rate from 4.25% to 3% on the single family home mortgage), so doing another refinancing wouldn't be as advantageous. Do you suggest doing a HELOC to fund some or all of the house hack down payment/closing costs? If the PRIME goes too high at some point in the future, the bank said it can switch to a fixed payment schedule at a lower rate.

My thought here is even with a HELOC payment each month, I'll effectively be cash flowing the single family home and part of a duplex, so it will still net a cash flow after the HELOC payment and expenses. Does anyone have experience with HELOC's or have used HELOC's as a way to finance a deal?

Thanks,

Tyler