HELOC Help! Looking to use equity for another Rental Property!

[Matt Jordan]

Hello,

I am looking to use my home's equity to purchase an STR in the Nashville, TN market. My current rental property is the Chicago, IL suburbs and is making me a profit of $600/month. My current rate is 4.25%.

I currently owe $150k, the home is currently worth around $315k. I would like to use around $25k to pay off debt, and another $25-$35k to use as a down payment for a STR.

If I do a HELOC in IL, am I able to purchase a property in TN? Or does it have to be in the same state? My current mortgage is with Chase.

Any advice would be much appreciated!

[Thomas Cummings]

Usually the bank doesn't care what you do with HELOC funds.