Pay down mortgage for a HELOC or just save the money?

[Alex Loera]

Save? Or Pay down mortgage aggressively to later use a heloc for investing?

I own my house with about 30% equity. And currently 5k in savings. My goal is to get my first rental property this year.

My thought is if I pay down my mortgage principal instead of simply saving it aside I will automatically save the 2.875% of interest while adding equity to my home. Then I will use the equity to take out a heloc and begin to invest.

Or should I simply save everything I can and have the cash sitting in the bank??

What are your thoughts and advice for someone like me who is just brain storming and getting started?

Thank you for your input