New RE Investor

[Sam LaCroce]

I am new to this forum and I apologize in advance for not knowing enough about real estate investing but I am intrigued. I have a question and am looking for some feedback (advantages or disadvantages).

I am 29 years old and have no debt obligations. I have $120,000 in a fund with a local bank and want to use this money to become more involved in real estate.

My local bank does offer a portfolio line of credit. I was going to use this as collateral and purchase a home. After, I would like to get a HELOC loan and pay off the portfolio line of credit loan. I want to pay off the original loan off with the HELOC because the interest rate is higher on a portfolio line of credit.

Is this a bad idea? I plan on renting out the house for additional income. Any advice would help. Thank you.