Getting started with a HELOC

[Kevin Barba]

Hey everyone 👋

I am new to investing & looking for guidance or even examples of how to make a heloc work for buying additional real estate.

To keep it brief (I know more detail is probably needed), if I use a heloc (from my primary residence) towards the down payment of 1 or more investment properties how does a bank look at me financing the remainder of the home(s)? Won't my debt to income ratio already he high from the heloc? I am not looking to over leverage myself, and at the same time I don't want to let a lack of education or fear hold me back.

*I'm still in the education phase & not ready to make the leap just yet, but any advice, examples or questions you have for me are greatly appreciated 🙏

[Colton Hahn]

Your thinking is correct, when you go to finance the investment properties that heloc will then show up on your DTI ratio and will be factored in. Thats something to keep in mind for sure!