If the rental property fails to generate enough cash flow and you cannot make the HELOC payments, you risk foreclosure on your primary residence .
Using the HELOC to cover the 20% to 25% down payment required for a traditional investment property loan. The Benefits 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). If the rental property fails to generate enough
Ensure the rental income (after expenses and the primary mortgage) comfortably covers the HELOC payment, even if interest rates rise by 2% or 3%. using heloc to buy rental property