Hello. Has anyone ever used a Home Equity Line of Credit for purchasing new investment property? Basically I have been pre-approved for a 95% mortgage and want to pay the 5% down and closing costs using equity from my other property. What are the pros and cons of doing this? Is it an advisable plan of action?
Thanks
Bill
Billiam,
Taking equity from one property to buy another is a good idea so long as you can support the debt. Be
very sure you can keep up the payments, even if a tenant forgets to pay rent a couple of months. I’ve done it a bit & am satisfied with the results. Good luck.
Ray