HELOC

[Fred S.]

Here is my situation. I bought a house and the LTV is around 70% as to today. In few years i am planning to convert current house as a rental and purchase a new house as a primary residence. So here is my question.

1. Is it a good idea to take a HELOC on my current residence and keep the money ready to pay as a down payment toward my next house ? ( The idea is to hedge against interest rate hike and have good amount for down payment on my future house)

2. Are there any pros/cons to this method ?

3. Will LTV value on my rental property matter when i take a mortgage on my future house ? is there any restriction to include rental income in the debt-to-income ratio based on LTV.