Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 2 years ago on . Most recent reply

User Stats

39
Posts
24
Votes
Rich Emery
  • Real Estate Agent
  • Windsor, CO
24
Votes |
39
Posts

HELOC for down payment??

Rich Emery
  • Real Estate Agent
  • Windsor, CO
Posted

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!

  • Rich Emery
  • Loading replies...