Advice about using leverage to buy and hold real estate

[Andrew Pettit]

Good evening everyone,

I am in the process of applying for a HELOC for about 100,00 and I am looking to use it to buy another piece of real estate. I was wondering if I could get peoples advice on the "dos and don'ts." My last place I used my own cash as the down payment, which I know now is a mistake, just looking for advice. Please be brutally honest, thanks.

[Ali Boone]

Well for sure my advice is to know the numbers. If you are pulling out a HELOC, there will be an interest payment on that, so anything you buy needs to generate higher returns than at least that interest payment...otherwise you are losing money.

If you want some help or ideas on running numbers, I can give you that. 

Also, are you thinking of....rental properties, flipping, BRRRRing....what?