When to use a HELOC

[Steven Stewart]

Hello BP! I am new to investing in Atlanta! I am currently looking at another property that I would own out right, but needs a little rehab. My question is would it be wise to use a HELOC to finance a 10k - 15k rehab? Or would I be better off looking for some source of financing?

[Brent Coombs]

@Steven Stewart, your Lender shouldn't care why you're applying for a HELOC. (But I don't recommend using too much of it on holidays to Las Vegas or Reno). They should ONLY be concerned with how much equity is still left on your own PRIMARY even if you waste it all, and, can you prove that you can afford to pay back the minimum monthly payments?

Get it? Or of course you could just ask what percentage they would lend to buy the investment, and you've already got the cash to make up the difference - and its rehab. Cheers...