HELOC for a new investor

[Keith Acfalle]

Hi Everyone,

Hoping to get advice on using HELOC for a down payment on a house.

My parents are planning to put their Lake Stevens, WA house under my name which would allow me to use its equity in the form of a HELOC. As of now, the house has 200k in equity (valued at 400k with 200k left in mortgage).

By having the Lake Stevens house under my name, I would be able to use the HELOC for a down payment to purchase my first property (excluding the Lake Stevens house). Are there any major factors I should consider before looking further into this strategy? Is this strategy viable for a new investor? Any advice would be greatly appreciated. Thank you!