Unlocking Capital to Grow Your Investment Strategy
If you’re a real estate investor, you know that capital access is the fuel for growth. Whether you’re eyeing a duplex, a short-term rental, or a multi-unit property, the biggest barrier is often the down payment. Enter: the Home Equity Line of Credit (HELOC).
A HELOC allows you to tap into the equity in your primary residence (or sometimes investment properties) to fund new deals — without selling assets or taking on high-interest loans. It’s fast, flexible, and often underutilized by investors.
Access cash within days
Tap into your home’s potential in minutes. Start our streamlined digital application to discover if a HELOC is right for you.
What Is a HELOC and How Can It Help Investors?
A HELOC is a revolving credit line secured by the equity in your home. Unlike a lump-sum home equity loan, a HELOC lets you draw only what you need, when you need it — and you only pay interest on the amount you draw.
For investors, this makes it ideal for:
- Funding down payments or full cash purchases
- Covering renovation or repair costs
- Bridge financing while waiting for refinance or sale
- Competing in hot markets with cash offers
4 Ways to Use a HELOC to Scale Your Portfolio
1. Use Equity From Your Primary Home to Buy Investment Properties
Many investors build their first rental portfolio by using their home’s equity as seed capital. A HELOC on your primary residence often:
- Offers better rates than loans on investment properties
- Doesn’t require asset liquidation
- Can be used repeatedly as you repay and reuse the line
Example: An investor with $200,000 in home equity draws $50,000 from a HELOC to purchase a cash-flowing rental — and then uses rental income to repay the HELOC over time.
2. Rehab-to-Rent or BRRRR Strategy Support
A HELOC can fund the renovation part of a Buy, Rehab, Rent, Refinance, Repeat (BRRRR) deal. You:
- Purchase a distressed property with a conventional mortgage or cash
- Use the HELOC to renovate
- Refinance after stabilization to pay off both the mortgage and HELOC
This strategy lets you recycle capital quickly — a major win in today’s competitive market.
3. Bridge Financing Between Transactions
If you’re waiting for a refinance to close or a property to sell, a HELOC can bridge the gap:
- Avoids delays due to lender red tape
- Keeps your timeline flexible
- Preserves relationships with contractors or sellers who expect fast action
Unlike traditional bridge loans, HELOCs don’t require a separate closing or high fees.
4. Maintain Liquidity While Investing
Liquidity is king in real estate. A HELOC offers a ready-to-use reserve without the drag of idle cash:
- You pay nothing until you draw
- Funds can be accessed instantly in many cases
- You retain flexibility in deal-making and negotiations
Key Considerations Before Using a HELOC for Investing
While HELOCs offer flexibility, investors should be mindful of the following:
- Variable Interest Rates: Most HELOCs have adjustable rates — be sure your deal can handle payment fluctuations.
- Loan-to-Value Limits: Most lenders allow up to 85–90% combined loan-to-value (CLTV). Know your borrowing ceiling.
- Tax Implications: Interest may not be deductible unless used for home improvements. Using a HELOC for investing usually doesn’t qualify — confirm with your CPA.
- Lender Guidelines: Not all HELOCs can be used on or for investment properties. HomeEQ’s HELOCs are intended for primary residences but can fund outside investments — check eligibility.
FAQs About Using a HELOC to Invest
Yes. This is a common strategy for scaling without selling your primary home or tapping other investments.
Possibly. Some lenders offer HELOCs on non-owner-occupied homes, but terms are stricter. HomeEQ currently offers HELOCs on primary residences.
In many cases, yes. A HELOC usually offers lower rates, fewer fees, and more flexibility — ideal for experienced investors with equity.
Yes. Even unused HELOC limits can appear as potential debt. Work with a lender who understands real estate investing.
Real Estate Investors: Tap Your Equity With HomeEQ
HomeEQ’s fast, digital HELOC application helps you move quickly on new deals:
- Check your rate with no credit impact
- Get approved in minutes
- Receive funds in as little as 5–7 days
You’ve built equity. Now put it to work in your portfolio.
👉 Check Your HELOC Rate in Minutes
Read Next: Build Smarter With Home Equity
- How to Apply for a HELOC Online — Step-by-step guidance to start your application.
- HELOC Calculator — Estimate your available credit before you commit.
- HELOC vs. Home Equity Loan — Understand which is best for real estate investing.
- What Is a Home Equity Line of Credit? — Learn the fundamentals before leveraging your equity.
- Apply for a HELOC Online — Get started with HomeEQ’s fully online experience.
💡 Ready to unlock capital from your home without selling a thing?
Explore your options with HomeEQ’s digital HELOC tool — fast, flexible, and fully online.
