• Last Updated:
  • Mar 25th, 2020 9:34 pm
Jan 15, 2019
57 posts


Last edited by username6 on May 22nd, 2020 1:22 am, edited 1 time in total.
4 replies
Jr. Member
Jun 3, 2018
176 posts
Current economy, I'd wait a bit for the dust to settle.

That said, assuming you have a source of income that can weather the current storm, I'd do it.
Deal Addict
Jan 15, 2017
3519 posts
I agree. I wouldn't take on any new debt at this time. Wait for the dust to settle.

You should understand though that if you do take out money on your rental to buy your principal home, interest on the HELOC will not be tax deductible.
Deal Fanatic
User avatar
Sep 8, 2007
8718 posts
Way Out of GTA
In many ways you are in a comfortable position.

1) access to credit and not fully levered
2) living rent free while rent coming in at the other place

You haven’t listed a location but generally
1) prices are likely to slowly come down then perhaps fall dramatically if RE mkt locks up, why would you want to buy at the current top before any of this virus is priced in?
2) you have flex in the case your current tenants do hit a wall and stop paying rent....worse case you could move back in there...

Bottom line it just feels way too early to switch out of your current comfort and into levered riskier scenario that you are proposing. It wouldn’t hurt to have a HELOC set up though so you can be prepared if deals start to emerge. And with the crisis getting worse, you may want the HELOC set up before that.
"It is in times of great fear or greed that the most opportunity exists."
Deal Addict
Jan 15, 2017
3519 posts
username6 wrote: ...
In terms of using a HELOC. Is it GENERALLY better to re-invest this money in some capacity (whether through stocks, real estate etc), or is it better to pay off the debt and live debt free?
That depends on your current and future goals, your current financial situation and you tolerance to risk. Using a HELOC to invest is going into debt and leveraging that debt to invest. Only you can decide if you are comfortable with that risk.