Question:

Should I get investment property HELOC?

Answer:

HELOCs are flexible loans and offer low monthly payments, thus becoming very attractive to investors. An investment property HELOC may be of particular use, if the rate is sufficiently low, and on a short-term property. Also, HELOC interest is tax deductible to a large extent and this makes an investment property HELOC a nice substitute for a bridge loan.

However, a HELOC is tied to the equity existing on the property and an investment property HELOC will only work if your investment property will be in an appreciating area.

Before taking an investment property HELOC, you'd better research how prices are going as it is possible that your HELOC be frozen should properties depreciate sharply.

Also, before taking an investment property HELOC, consider doing a bridge loan first. You may not need longer term financing such as HELOC, and a bridge loan is the well known road for best investment property short term financing.

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