Heloc questions for rookie

[John Ha]

Hi all - have not gotten into investing yet but have been wanting to for years just have not had the courage. Been thinking of using heloc on my primary.

I pulled out a heloc on my primary home to finish the basement back in the summer. I was told I could get up to 120k but I chose to cap it at 40 which is what the basement cost us. They said I can always increase if needed. The bank I used does things differently. Instead of a draw period, this heloc is open forever or until I close it, and the monthly payment is always 1% of the outstanding balance. My interest rate is variable and currently in mid 7s. I currently owe 38k on it.

question 1. Did I pull out the wrong heloc? Seems it would make more sense to have one with interest only payments so that my monthly payment is much less?

Question 2. My wife and I have our own fun/spending accounts after all bills and and things like gas/groceries are accounted for. I have about $1000 a month in money I can play with. Does it make sense to use heloc on primary to fund investment properties? I'm mainly concerned with the exit strategy and getting the heloc paid down after refinancing the investment house and then do it over