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Updated about 4 years ago on . Most recent reply

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109
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William D.
  • Staten Island, NY
15
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109
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Using a HELOC to purchase another investment property

William D.
  • Staten Island, NY
Posted

What's up BP!

What are your thoughts on using a HELOC on 1 of my investment properties to purchase another investment property? I'm not even sure if that's allowed. The new investment property rental income would cover the mortgage and easily cover the HELOC.

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Brian G.
  • Rental Property Investor
  • Los Angeles, CA
1,241
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1,829
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Brian G.
  • Rental Property Investor
  • Los Angeles, CA
Replied

@William DeLuca as long as you can pay it back quickly (ie on a flip or Brrrr), if not it is likely best to do a cash out refi on prop #1 to come up with the down payment for prop #2 especially with rates at all time lows. Good luck!

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