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Updated over 2 years ago,
HELOC for down payment??
I'm fairly confused with the strategy to use a HELOC as a down payment on an investment property....
For example - I have a $50k HELOC available to me. Let's say I want to buy a $200k home and use the entire $50k HELOC for my 25% down payment with a DSCR loan. What's the strategy here? - To pay my monthly mortgage and pay down the HELOC asap with my rental cash flow? This seems like this would take a while to pay down the HELOC - I'd imagine after paying mortgage and HELOC that I'd likely not be cash flowing very well, if at all, for a long time.
Am I missing the point of a HELOC? How could I better use my HELOC to grow my rental portfolio?? Any resources, links, comments, suggestions are very welcome!