Lucy Hinds leveraged a home equity line of credit strategy to build a rental portfolio in Cincinnati, Ohio, turning a single HELOC into capital for three single-family rental properties. The Cincinnati-based investor used conventional financing paired with HELOC draws to fund her acquisitions, departing from the debt-free Dave Ramsey model she previously followed.
Hinds' approach demonstrates how investors can unlock equity trapped in primary residences to fuel rental expansion without waiting years to accumulate cash reserves. By tapping home equity, she accelerated her timeline from one property to three, focusing on long-term rental income rather than quick flips or equity plays.
The HELOC strategy works like this: as Hinds paid down her primary residence mortgage, she accessed that equity through a line of credit. She then deployed those funds as down payments or closing costs on rental acquisitions, keeping conventional mortgage leverage in place on the rental units themselves. This layered financing approach preserved capital while maintaining leverage across multiple properties.
For Cincinnati landlords and investors, this model proves viable in secondary markets where single-family homes carry lower purchase prices than coastal metros. Hinds likely found property acquisitions ranging from $100,000 to $250,000, allowing HELOCs of $50,000 to $100,000 to move the needle on multiple deals.
The strategy carries specific risks. HELOC rates float, typically ranging from prime plus 1 percent to prime plus 2 percent, exposing investors to rate hikes if they carry balances long-term. Rental income must cover HELOC payments during periods when units sit vacant or tenants default. Additionally, lenders can freeze or close HELOCs during market downturns, eliminating access to capital when deals appear.
For Cincinnati rental buyers and sellers, Hinds' three-property milestone reflects strong local market