Have you ever used an Equity Line to pay the mortgage on an Investment Home?

**Prisca Lyndi** · 06-14-2011, 01:42 AM

I currently have a 15 year fixed mortgage on my investment property (my old house), with about 8 years left to pay. I have some GREAT tenants in there, but they are unhappy with my homeowners association's constant bickering about every little thing they do wrong (too many cars parked at the property, a "loud" car for crying out loud), bottom line, they might leave. I make decent money, but not enough to cover my current home's AND the investment home's mortgage without rent check help.

**laura.alamery** · 06-14-2011, 09:41 AM

Unfortunately is one of the problems with landlording - at times you will have vacancies.
If your tenants tell you that they will be leaving, ask them to start showing the house to other prospective tenants, so that you minimize the vacancy factor.
Once they move out, go ahead and start showing the house even if it is not in top shape so you can line up a tenant as soon as possible - prospective tenants that visualize what the place will look like after the clean up/repairs are usually the easier to work with in the future - not as high maintenance.

If you have to use your equity line to pay the mortgage for a month or two, do it wisely. Pay down the equity line as soon as you receive the deposit from new tenants and with the extra cash flow for the first months' rent. It is easy to let things get out of control and be stuck with a liability that you don't want or need.