Is it a good idea to buy investment property on HELOC?

[Santosh Bobbili]

Hi,

I am a new real estate investor based in LA. I have recently closed a townhome in LA and producing some cash flow out of it.

Now I feel am ready for another investment, but I don't have enough cash to put 20% down on the next investment. Me and my wife both are on W2 with well paid jobs and we own a single family.

Is it wise to take HELOC loan on our home and use that as a down payment on the next investment property?

Appreciate any feedback.

Thanks,

Sai