QUESTION:
Someone told me that they found an article on your website about using a
revolving line of credit for your revenue (rental) properties.
This was my understanding of it (example):
- your renters would pay you $2000/month
- the line of credit against the rental house / mortgage would increase by
$2000/month.
- you take the $2000 from the renters and apply to your personal private
mortgage.
As I see, the advantages of this would be that you would pay of your
personal mortgage first and the expense on your interest for your rental
property would be the maximum, as the mortgage for that property would not
decrease until your private mortgage is paid off (thus a higher deductable
amount for the rental property).
Is this legal? Can it be done? And is there an article on your website
that explains this in more detail?
Thank you,
