HELOC

[Mike McKinzie]

I am mulling over an idea and I would like to hear other's input. For those that don't know, my mother passed away in April and they had a small family trust. I just found out last week that they have an active HELOC on their residence. It just so happens that I am moving to that house in November, in Southern California. The HELOC is for $210,000 and they have only borrowed $12,000 on it. What intrigues me is that the Fixed Interest Rate on the HELOC is 3.99%.

So my question is, "Would you pull this out and invest it or leave it there for a reserve fund?" I know I can invest it and get some really good returns. Even a 10% Cap Rate puts some nice change in my pocket. But I could probably get 15 or 20%.

Ideas!?!?