How do you buy investment property with a home equity loan?

Question

My husband and I are thinking of purchasing an investment property by way of using a home equity loan on our first home. Is this a smart thing to do? what are the down sides of it? We don't have money of our own in the bank to do it, but it seems like a good time to take advantage of the changing real estate market.

Answer 1

Forget taking such a risk.  Untill you have a nice 6 months emergency fund don't go messing with your home security.

Good luck but don't let the vision of having "investment" property make you do something foolish.  IF you did have some money in the bank and experience my answer MIGHT be different.