Using HELOC's

[Asher Anthes]

So, I cash out refi'ed my first property up to 80% at 3.75% fixed. I'm about to close a second mortgage to go up to 90% LTV and give me an additional $17,500 in cash out at 4.75%. I'm using all the money I get out of this house to re invest into real estate or other investment avenues.

I guess I'm a little nervous about the HELOC because its variable tied to prime (which is low now). What do you guys think about the future of the prime rate?

I'm considering using this strategy on my next house as well to generate some quick cash for more investment capital. Basically buy a property below value with an FHA 203.k 3.5% down, after repairs are done, hopefully have enough equity to cash out refi up to 80% and then potentially HELOC up to 90% on that one as well.

So, I would essentially have two OO financed properties that I've cashed out "free" equity that I've generated. Anyways, do you think leveraging this high is risky now? What is the future for those prime rates?