Getting Started - Loan Structure / HELOC for down Payment

[Nick Pederson]

Hello All,

My wife and I are just getting started in the real estate space and looking for advice on the lending side and how to structure our first loan. We are wanting to utilize our home equity to finance our first deal. Our thought is that we would utilize a HELOC for the down payment in our first property, but we want to make sure that we are still able to refinance out that money to finance another detail.

Here are the 2 main questions I had to start with:

1) Do I need to structure the new mortgage as an investment property loan so that I can continue to refinance out the money I just put towards the down payment and use in our next property? 

2) Any other recommendations or advice for us in how we structure our first loan? Are their any concerns with utilizing a HELOC, besides the higher interest rate we would pay on that loan? Are their restrictions on how we can use the HELOC funds?

Any advice is very much appreciated and if you have any reccos I would very much appreciate it!

Thanks!

Nick