To HELOC or not to HELOC, that is the question

[Mark Cheeseman]

A friend owns a home in the Bay Area of San Francisco. The house if paid for and is generating rental income and he wants to know if a HELOC is a good move or not to invest in other assets.

Borrowing money is very cheap right now and he would like to know what are the pros and cons of a HELOC would be to use the money to buy more real estate in other parts of the country.

He would like to keep the property.  There may be an option to 1031 exchange it if the deal is right.

He understands he can take out a loan for up to 80% of the property.  I'm sure you all have some great ideas about what he can do.  Let's hear them.