Can you use HELOC to pay off HELOC?

[Brian Plajer]

Hello,

I have a HELOC that I'd like to use for purchasing long-term hold rental properties (hopefully multifamily). The HELOC is interest only for the first 10 years followed by interest and balance payments for the next 10 years. My question is can you use a different HELOC to pay off the first HELOC as you approach the interest and balance payments?

thanks,

Brian

[Simon W.]

Quote from @Brian Plajer:

@Dave E. I was referring to using the HELOC to fund the down payment

I have clients that uses their HELOC to fund down payments for a new purchase. It works. However, you really need to know if the numbers will work. This is a risky move, but it's real estate. What isn't risky? lol