TSP loan + HELOC combo

[Berry Starnes]

With the market at all time highs and reality far from what the market is…..why not tap into our TSP? I'd rather have some of that in cash than watch it go down or sideways.

TSP loan is 50k (max) for 5 years at a little over 1% interest. This would be about $800 per month coming out of your pay check, but going back in to your TSP along with the interest. And, you can pay back with no penalty. Kicker being you have to wait one year before repeating the process once you pay it back.

How does this sound for a BRRRR property??…..

Use TSP 50k + some of a HELOC as cash for purchase of property. Holding costs should be lower than using all of HELOC. 50k won't cut most purchase prices, so have to use some of HELOC too.
The remaining cost-the  Renovation-will be paid using the HELOC. Then refinance and pay back HELOC and TSP

thoughts?  Has anyone done this?

[Hoseah Njuguna]

Hi Berry. I have used both TSP loan and HELOC to purchase investment...I certainly thought the ROI from real estate was better than relying on highly fluctuating stock market.  HELOC are also highly reliable source since the interest rates are low.
My tenants pay back the HELOC and TSP and now I have another cash flowing property.

I think what you are thinking about is a great strategy