Should You Use a HELOC to Buy an Investment Property? Here’s What High-Income New Investors Need to Know

Real Estate Investing for Life Show
November 25, 2025•2 min read

If you’re a high-income earner who wants to start investing in real estate, you might be sitting on one of the most powerful tools available to you: your home equity.

In fact, many new investors tell me they’re ready to buy their first rental property but don’t have enough liquid cash for a down payment. That’s where a HELOC (Home Equity Line of Credit) often comes into the conversation.

But is using a HELOC to buy an investment property actually a smart idea?

In this week’s episode of Real Estate Investing for Life, I break down exactly when using your home equity can accelerate your investing—and when it might actually slow you down.

Why HELOCs are popular for high-income new investors

Homeowners—especially here in Idaho—have more tappable equity than ever. And for many high earners, a HELOC is the fastest way to:

  • Access capital for a rental property

  • Make a stronger offer

  • Fund renovations or a BRRRR project

  • Start investing without draining savings or retirement accounts

When using a HELOC makes sense

A HELOC can be a smart move if you have:

  • Strong, stable income

  • Excellent credit

  • Solid emergency savings

  • Rental property reserves

  • A property that cash flows after HELOC payments

  • A clear repayment plan

This is where high-income earners have an advantage—you can leverage equity responsibly because you have the income to support it.

When to avoid using a HELOC

A HELOC is not a good idea if:

  • You’re buying negative or break-even cash flow

  • You don’t understand rental analysis

  • You don’t have savings set aside

  • Your budget is tight or unpredictable

  • You’re hoping everything goes perfectly

Leverage is a tool—but only when used wisely.

Want the full breakdown?

In the episode, I walk through real numbers, current HELOC statistics, risk factors, and the exact framework I teach new investors before tapping into home equity.

👉 Listen here: Should You Use a HELOC to Buy an Investment Property? Here's What High-Income New Investors Need to Know.

If you’re a high-income professional or business owner trying to get into real estate investing faster, this episode will give you the clarity you need to make a confident decision

Go and grow,
Jonna


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