New from Raleigh NC

[Kevin Scott]

I have been lurking for a little while but now I think I'm ready to contribute.

I have been reading and just started to take a class at the community college to help in my education.

Right now I'm looking at a property close to my house that I would get a mortgage for the 80% and a HELOC for the 20% down. I see that people are on both sides of the fence with using a HELOC. Any words of wisdom?

Last I have sent in my paperwork to start an LLC with my wife.

[Brendan J.]

Kevin, you're very right, it's hard to pass up cheap money like that. If you have the means to pay back a HELOC in full if it's called at a moments notice (you can cash out investments if need be), you're in fine shape.

I get worried for some of these investors that max a $100,000 HELOC on their primary and use it for long-term investments that are not liquid at all. If the bank wants the money back tomorrow, there will be some awake nights for sure.

Welcome again and good to have you.