HELOC PLUS Mortgage Payment - Advice on Investment Plan

[Brittney N.]

Hello All,

I am looking to invest in multi-unit investment property. My concern in today's market is finding a good deal. I plan to use money from a HELOC for a down payment to invest in the multi-unit. My concern is the mortgage on the multi-unit PLUS the monthly payment on the HELOC always nets a ROI of about 2% (NOT GOOD) and low cash flow.

I do have SF home free and clear. From a long term investing standpoint, I would love to here from seasoned investors if using the rent from the free and clear SF home to pay the HELOC monthly is a good investment plan in long run? The money from the SF home will essentially just pay the mortgage on the multi-unit and have very little left over cash flow itself.

Hope this makes sense.

[Charles Soper]

Maybe get a little creative...is the SFH you mention your primary or another investment property? If the latter why not sell that and 1031 into a larger multi-family property? Or if the primary how about selling that and living in one of the units of the multi-family you buy?