HELOC through investment properties

[Ryan Cheek]

Our loan officer is offering to open a HELOC under 2 of our first properties that are almost completely paid off. From what I understand we can purchase a house and then later put it on a typical note and pay back the HELOC and then repeat the process? I'd love some advice on how anyone has used this strategy and any tips they may have after using this product. Thanks!

[Sean Autry]

Yes, you can do this.

I used a HELOC on my primary as part of the down Pmt on my rental. Several months later (now) I am working on a HELOC on my rental. Once it closes I will transfer the debt from my primary to my rental, and then repeat the process again very soon.

If you can source deals well below market- then in theory you could repeat this process many times over.