Posted by Wayne-NC on March 06, 2001 at 09:04:06:
I have done this a couple times. I like equity LOC’s because they are “refillable” and able to use again. With an amortized loan, that’s it until you refi and pay the closing costs again. Try to get an interest only payment and pay more whenever you can. As your balance drops your net cash flow increases. It’s like giving yourself a raise each year as the balance goes down. The interest will vary according to the market but you just have to plan for that. When it’s full you can use it again for the next investment or, move into the home and make it your primary residence and take out another LOC and do it all over again. Just do your numbers right and be careful because your home is on the line.