Good Leverage or Bad Leverage?
I am looking at purchasing a duplex.
I will be using my a HELOC to cover the downpayment. This will be paid back on a schedule from part of the rent on a mortgage free property.
The remaining mortgage will be from the bank.
My question to you both is, when I calculate my cash flow, should I do so with only the bank mortgage figures? If I incorporate the HELOC payments I would most likely be in a negative cash flow, but not really as it is being paid back from the rental, not truly out of pocket.
I understand this does effect my overall cash flow, but would you precieve this as a good form or leverage?