HELOC vs. Mortgage for a Rental — Don't Buy Without Cash

Dalton asks about using a HELOC for a rental purchase; Dave explains banks may offer lower HELOC rates versus investment mortgages but strongly warns against buying rental property without sufficient cash reserves.

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Dave Ramsey and Ken Coleman answer your questions and discuss:

"How do I get out of investor debt from business men I don't want to cross?"
"I'm overwhelmed with my debt. How do I get out of this?"
"Should I pay off my estranged son's student loans?"
"How do I separate business expenses from my personal expenses?"
"I'm getting a divorce, how do I best use the proceeds from the sale of my home?"
"Is it okay to refinance my house in order to fund a $150,000 home addition?"
"I recently lost my job, should I pull from my IRA to cover debt and wedding costs?"
"Am I a wimp for wanting to quit my job?"
"Do I have to claim a gift from my former boss on my taxes?"
"What's the best way to encourage my husband to be independent of his parents?"
"Can my 18 year old son get out of a car loan he co-signed for his ex girlfriend?"
"I'm a single parent of 3 kids and feel like I can never get ahead"
"Should I cash out my whole life insurance to buy term life?"
"Can I use a HELOC for a second home?"