Using a HELOC to buy 1st Investment Property

[Ryan Barrett]

I'm looking to buy my first rental investment property, and have thinking about using a home equity loan or a HELOC. I have approx $52k in equity on my personal residence, but my question is; how high is the market value right now? Just because I can get, say 70% of that equity in a HELOC, I'm thinking doesn't mean I should, when/if the market comes back down. I'm in Wichita KS, so would anyone have insight on what percentage we are high here, and consequently how much lower I should view my usable equity. 10%? 20%? Thanks!

[Kerry Baird]

@Ryan Barrett, I think it is wise to consider that. 

I am currently doing a side gig, to make extra money.  Have kids in college, etc. so I have been renting out first one, and then two rental houses I found (with seller financing) on VRBO.  I'm always looking for extra down payment funds. 

We bought long term rentals in the last down turn, and I'm looking to refi and pull cash out, and then will buy a few more.  Anyway, I recommend the side gig.  Pizza delivery, UBER, Turo, rent out one room, sell stuff on eBay or whatever.  It is nice to have that extra cusion.