Using Home Equity to start investing

[Sergio Salinas]

What is the best way to use home equity in your home to start a rental property investment. I'm wanting to buy my first investment property. I've got about $90,000 in home equity and would like to begin buying rental property. Would you recommend refinancing to take cash out or using a HELOC to use for down payment on rental? Also how much would it doing this affect me getting a loan for the rental? Any help or suggestions would be appreciated!

[Adam Parker]

@Sergio Salinas @Richard Bowman hi all, I just used my HELOC to be my down payment on my newest property!

I got a great deal at Bellco credit union that was 3.99 FIXED! I’d recommend that fixed rate if you’re planning on holding for a while, just for stability and predictability purposes. Shopping around many places offer a great fixed rate for a year that then turns into something like prime +1% or so.

I thought it was a great way to get the capital for a property. Some other advice I've gotten is to then refi the newest property, pay off the HELOC and do it all over again