How to properly use a HELOC to help finance first investment property

[Rodrigo Muller]

Newbie here, hope everyone is having a lovely day! I am currently educating myself and looking to get my first investment property this year. My current situation is, I own my primary residence in South Florida and I'm sitting on around $500k in equity. I'm currently looking to get a HELOC on the property for a down payment and get a mortgage to finance the rest. My question is, about how long do I wait to refinance and pay off the HELOC, and, is that the best way of going about it? Just trying to plan my strategy so any recommendations would be greatly appreciated! Thanks in advance!

[Luis Maqueira]

Rodrigo

Heloc is the best tool you can use to put to work the equity in your home. But there are many things to consider. Heloc is going to be on first position or second to your actual Mortgage. What rate and terms do you have on the actual mortgage.

Pay it back never.... if you can leverage that capital as a 10% of a 100% investment why pay it back and keep on using it.

Give me a call to chat we buy multifamilies,  I currently own 6 and all started levering my House equity. 

You need to have a good knowledge in Real estate to invest.  Since you are putting risk on your home.

Good luck