Using a Heloc on a Rental Property

[Kiuny Perez]

Hello Everyone,

My name is Kiuny, I've been living in Florida for about a year now but am originally from New Jersey. I'm getting ready so I can start investing in the Tampa/St. Pete area hopefully before the year ends. I'm currently reading David Greene's book on the BRRRR method, but with the market being so hot I'm looking at a Plan B in case I can't get a house for 75% of ARV all in.

Would using a heloc with an 8% interest rate be smart in the long run to buy a rental assuming it cash flows. My worry would be the interest of the mortgage and the interest of the heloc.

Thank you!

[Dawn Brenengen]

I would not use it for long term financing, but if you want to use it to purchase, and then refinance the property into a conventional mortgage, I think it can be a good tool