Using a HELOC to purchase a second home

[Jody Tims]

Hi there,

I owe 328k on a home in the hills Portland that recently appraised for 630k after a refi. Mortgage with tax and insurance is $1,760. I'd like to use a HELOC for a down on a home in a more suburban setting and rent my current home. A property manager said I could rent the home for $3,300 without issue. They seem to vet tenants very well. Rent at that price point more than pays for the home and all of the related costs and even gives me a nice cash flow. My wife and I will then purchase a new primary on our existing income.

I’m hoping the group can help me poke holes in this plan or help me with what I may not know.

Much appreciated.