Using a HELOC to buy an investment property

[Andrew Marzec]

Hi All, My parents have been kind enough to offer me access to a HELOC on their primary residence. I have been buying student rentals and been doing well so far. They have seen my success and offered to help me grow even further. Has anyone had any experience paying for an investment property (in full) with a HELOC? I have seen a lot in the forums about using a HELOC for the down payment but have yet to see a thread about buying an investment property outright using one. Is it allowed/possible? Any advice is greatly appreciated. Thanks!!

[John Powell]

Andrew Marzec I have used a heloc to buy a property out right. I then used the heloc to rehab it get a tenant in it and season it. As soon as I could I did a refi on the rehabbed property paid the heloc off then repeated. If your fast enough you may be able to do delayed financing on the rehab so you don't have to season the rental.