{
  "id": 1246051,
  "title": "How savvy real estate investors are using HELOCs to buy rental properties and build wealth",
  "url": "https://urgent.news/2026/08/16/how-savvy-real-estate-investors-are-using-helocs-to-buy-rental",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-16T09:40:01.000Z",
  "source": {
    "name": "Business Insider",
    "slug": "business-insider",
    "url": "https://www.businessinsider.com/how-to-use-heloc-to-buy-investment-properties-build-wealth-2026-8"
  },
  "original_language": "en",
  "account": "Retired early by leveraging real estate investments, Mark used a home equity line of credit (HELOC) to fund his first investment property in Virginia. A HELOC allows homeowners to borrow against the equity in their property, functioning similarly to a credit card with a set limit and draw period. Mark opted for a $30,000 line of credit, which enabled him to purchase the property without tapping into his home's full equity. Similarly, Michigan investor Scott Steenbergh utilized his HELOC to secure a down payment for a sober-living rental property, as the down payment required for such an investment was higher than that for an owner-occupied home. Both strategies convert wealth tied up in a home into capital that can be deployed elsewhere, either to generate income or grow the original investment. However, this approach comes with risks, as HELOCs are secured by the home, and failing to repay the debt could result in foreclosure. Despite the risks, using home equity in this way can be a savvy way to build wealth when the asset being purchased generates sufficient income to justify the debt.",
  "summary": "Savvy property investors are tapping the equity in their primary homes to fund an investment purchase. Here's how it works.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}