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Updated over 7 years ago,

User Stats

120
Posts
73
Votes
Tony Lin
  • Rental Property Investor
  • Fremont, CA
73
Votes |
120
Posts

Drawing equity in main home to invest passively

Tony Lin
  • Rental Property Investor
  • Fremont, CA
Posted

I have a good amount of equity in my primary residence that I'm thinking about leveraging for passive investments in syndicated deals. Right now I have ~75% equity available to draw. Mortgage payments are pretty low and I'm comfortable drawing another 25% equity to invest with. That would be 50% equity remaining in the property and more or less doubling my mortgage payment. 

What type of loan would be best for passive investments? I'm thinking of doing HELOC since I can pull money in and out as they're invested in funds, then pay down the line as the principal is refi'ed out of the deal. A second line is stable rate but there's a high chance I'm paying for funds that I haven't actively invested in.

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