My first potential rental. Finance question.

[Terry McAllister]

Hey all, So after a lot of looking and hesitating, I finally made an offer and am waiting to hear back. I have a question about financing. If it’s accepted, I’ll be paying 170k for a 3 bed 2 bath house that will probably be worth 220-230 after TLC, paint and carpet. Houses this size in this neighborhood sell for 230ish and rent for 16-1800 a month. After the 20% down payment and fees/closing, I’ll be coming out of pocket with around 42k and I’ll owe 136k on the loan. My question, I have the 42k, but I really, really don’t want to use it. I enjoy my nest egg and don’t want to disturb it. I have about 70k worth of equity in my primary residence, would it make sense to get a HELOC for 42k? and then refinance the rental after rehab and get my money back out and pay off the HELOC immediately after? In my mind it seems like a great idea, but I don’t know much about HELOCs and how they’ll affect my credit and the fees.