Quick answer It can be. It's a mistake if the rent can't comfortably cover the new loan payment, your savings are thin, or you borrow the most your lender will give you. It can work if you borrow conservatively, keep six months or more of reserves, and the deal still makes money after vacancies, repairs and a higher interest rate. For homeowners with a steady income, … [Read more...] about Is Using Home Equity To Buy A Rental Property A Mistake? What Banks Won’t Tell You