House jumping & acquiring HELOC's along the way?

Question

So I recently got a HELOC on my primary residence and have been hearing that I am unable to do get those on investment properties; my question is this: would I be able to move out of my primary residence to purchase another, rent this place out keeping the HELOC in place, then get a new HELOC on the new primary?

I'm trying to think of creative ways to fund deals (just got Brandon's book for Christmas but haven't read it yet) and was wondering if this would work? Also, any other advice would be appreciated as I am trying to have the ability to acquire multiple properties quickly, if good deals are present.

Thanks!

Mike Cowper · Answer

Thanks! I like the idea of having access to cash quick for acquisition or repairs on my investment only properties (which I wouldn't be able to put a HELOC on), and then refinancing them after they have been seasoned with traditional mortgage.

Christian Bors · Answer

@Mike Cowper if the heloc is in your primary residence, it will still be available after you move out. Helocs are great tools for cheap cash. Unlike a cash refi, there are no closing costs. However like Melanie said, most helocs are variable rates with the option to lock in what you borrow. Helocs are great tools but just make sure if you intend to keep a balanced for a long time that you have a fixed rate. Also if you move into another primary residence you can acquire another heloc. You can keep doing this process, however it may be a better options on get blanket loan once you acquire enough properties