HELOC on Investment Property

[Elisa Duka]

Hello BP friends! 

I'd really appreciate opinions and advice on a timely matter that I'm currently facing. I own a condo free and clear and am looking to do a HELOC for $35k on it for a down payment on another property.

Question is: The HELOC for $35k has a 1.99% for the first 12 months then 5.50% (Yikes!). It's a 15 year HELOC and the draw period is 5 years, which are interest only. I do save a lot considering there are no closing costs or pre-payment penalties or inactivity fees.

What do you guys think?