Buy Strategy
I saw this in another post, thought I would start a new thread.
What I would like to do is purchase property with cash (save on the closing costs) and then get a "No Fee Home Equity Line of Credit" with interest only payments.
Anyone think of any negatives with this scenario?
My CPA told me that only $100k of a HELOC loan can be used for ibvestment purposes and and have interest costs deducted.
Are you within that limit?
[addsig]
Most properties will be above that mark in my area. I was thinking of using the HELOC to finance rehab work and hold costs until sold retail. Or, pull as much cash back as possible but leaving a low enough balance for a positive cash flow.
Thanks Joel!
Now that things seem to be back to normal I will bump this thread.
Thanks for the replies, it sounds like the way to go for now.
Expect a higher interest rate on a non-owner occupiend LOC than on a non owner occupied 1st mortgage.