What to look for when shopping for HELOCs?

[Preston Donahue]

I'm at the beginning stages of getting a HELOC, I plan to use it for a down payment for a 2-4 unit. What should I keep my eye out for when comparing different lenders? What rates and terms are you currently getting?

[Jason Wray]

If possible go with a cash out refinance and do not worry about rates you can do a buydown or a rate reduction loan in 12 months or more. HELOCS right now have similiar rates due to inflation so under these circumstances cash is king especially for liquid reserves. Cannot use a HELOC for PITI reserves or as an Asset.

[Bhushan Shinkre]

@Preston Donahue - what did you end up doing with HELOC? I'm in similar boat as you're, I've laid out my options here: https://www.biggerpockets.com/...

Would love to get your take and connect on this topic. I do not agree with most folks who say HELOC is a bad option. I think it's great especially when you want to flexible with what you draw and rates can likely head down from here.