Why Not Use Home Equity For A Purchase

shewey profile photo

I keep reading that you shouldn't use
home equity to purchase or make down
payments on rental properties. Why?
It is a very low interest loan and can
also carry interest only payments. And
the interest is tax deductible.

Comments(1)

  • Jubb5th April, 2004

    I did it this way. Just make sure the income from the property will service your line of credit and have a positive flow. And don't forget...it's tax ded...

    K.Jubb

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