Is Now (Still) a Good Time to HELOC?

[Travis Pirtle]

I've finally convinced myself to pursue a HELOC on my primary residence to fund the down payment on my next rental property, but the speculation of additional rate hikes has me nervous. I've contacted a few lenders, and they do have ceilings in place for their variable HELOC loans, but they are very high (15%+).

For those who have HELOC'd to fund rental properties in the past or believe in that philosophy, do you still believe it's a good time to do so? Or does the risk of significant rate hikes in the near future put the pause button on this strategy for the time being?

[Ned Carey]

@Travis Pirtle most if not all HELOCs are adjustable rate loans. The risk of rising interest rates was just as high 6 months ago, just nobody seemed to recognize it.

Just pick deals that work if rates go up. Run the numbers with a reasonable worst case scenario and if they still work go for it..