Financing and deductibility for a rental
I hope I'm on the right forum here. I own a rental house that has an adjustable mortgage at prime. It's currently fully indexed and adjusting monthly.
I just received an offer for a HELOC on my primary residence at prime-1%. So I'm wondering about taking a HELOC and using it to pay off the mortgage on the rental.
My concern is whether or not I can consider the HELOC on my primary residence as an expense for the rental, since obviously it wouldn't be secured by the rental. I know a HELOC is deductible as an itemized expense against my regular income, however I'm way over the AMT so it wouldn't help as much.
I'm guessing this won't fly, but I welcome any comments or suggestions.