1. I have a home equity loan ready to use. Should I use it in steady of mortgage to buy a rental property? It seems save money, but I am not sure if it is true or if the interest is tax deductible. I have a closing date set on Aug 1. So please help me to make a decision.

2. Is it a good idea to use small amount of 12 months 0% interest of credit card for closing cost, such as $5000?

If things don't go as planned what is your exit strategy?

Is the lender going to forclose on your heloc?

What do you do when the 12 month teaser rate ends?

If you have liquid assets that you can use to pay it off when you want and this is a cheaper way to go it can be one thing, but if you have no way out of the debt it is a much riskier option.

You can only deduct the interest on your primary residence, to your original principal amount plus $100,000. Lets say you purchased a home and got a loan for $300,000 and now it's paid down to $35,000. You want to refi, take a second or open a line of credit to buy another property. Since your first loan was $300,000, plus a $100,000 equal a new loan can be $400,000 that you can deduct the interest.

However, it is against the law to borrow money for a down payment if the loan is sold or guaranteed by the government.