HELOC Guidance on LTV for Starting Out

[Taj Hayden]

Hi all,

About to speak with local banks/credit unions about a HELOC on my primary. 80% LTV will do but I'm wondering if I will kick myself later for not going 90%. Has anyone started out at a lower LTV only to regret it later (and missed deals because of it)? Thank you.

Taj

[John Warren]

@Taj Hayden you will absolutely end up regretting not getting 90% LTV! I just finished up getting a HELOC on my primary. I used a HELOC on my old house to get me in the game, and I was able to acquire my four unit in Lyons, IL which has been a fantastic deal. HELOCs don't cost you money every month until you use them, so in my mind there is no reason not to have that extra buying power.

What are your goals with the HELOC? Sounds like you already have a property picked out.