- Joined
- Sep 21, 2007
- Messages
- 55
Here`s a question that I`ve been thinking about...
If you take equity out of your home in the form of a HELOC (lets say at prime) and use it for downpayment money,
do you factor that in as a second mortgage of 6.25% (and choose an amort. period). in the cashflow analysis?
I`m self-employed so I won`t be able to make RRSP contributions anymore (no "income"). I can reroute this money to pay back
the HELOC that I use for downpayment but what if this makes the prop cash flow negative. Does this turn an otherwise good investment into a "bad" one?
Thanks,
If you take equity out of your home in the form of a HELOC (lets say at prime) and use it for downpayment money,
do you factor that in as a second mortgage of 6.25% (and choose an amort. period). in the cashflow analysis?
I`m self-employed so I won`t be able to make RRSP contributions anymore (no "income"). I can reroute this money to pay back
the HELOC that I use for downpayment but what if this makes the prop cash flow negative. Does this turn an otherwise good investment into a "bad" one?
Thanks,