Cash or HELOC? A question from a brand new investor.

[Aysel P.]

A real newbie here. This question is probably asked a lot. 

My offer just got accepted on an investment property. Sale price is $200K and I plan on making 25% down payment. Would you use cash or HELOC from primary home for the down payment? The current tenant is paying $1450 rent and we are keeping the family. This will be a long term investment. The house is in good condition.

Thank you for the feedback!

[Will Fraser]

Hi @Aysel P., it really doesn't matter either way. If you like to get nerdy with analytics then you'll likely find that you are more optimized with the HELOC versus cash, but that's really not super important at this stage. Both methods of purchase constitute "paying cash" to the seller and to you both maintain similar liquidity.