Using HELOC Financing

[Jerome Ramirez Guerrero]

Hi, Real estate Investors.

To finance my first investment I am looking to use the HELOC program.

Have any of you used this process ? and what was your experience and outcome using it for your investment (s)?

Thank you,

[Marcus Auerbach]

You'll be overleveraged if you use a HELOC to fund the down payment for an investment property. There is a reason why banks want you to only borrow 75% and not 100%.

However, a good strategy is if you can upgrade the property, increase its value, then refi and pay back your HELOC, so you use it only for short term financing.