Using Heloc To Buy Rental Property Info
You are essentially taking on debt to acquire more debt. If the real estate market dips, you could end up "underwater" on both properties. Strategic Tips for Success
Because a HELOC is secured by your home, the interest rates are typically much lower than personal loans or credit cards. using heloc to buy rental property
Interest on a HELOC used to "buy, build, or substantially improve" a home may be tax-deductible (consult a tax professional regarding investment property specifics). You are essentially taking on debt to acquire more debt