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Best Way To Finance Shares

I'm thinking about digging deep to accumulate more shares since I'm about tapped out of cash. I'm wondering if there's established rules of thumb for what sources to dip into first. My options are:

1. Margin at my broker. (Schwab, and I've already asked them to match Fidelity)
2. Refinance a rental home. Lots of equity and can probably get a rate 2% lower than what I'm paying now.
3. Sell the rental house. I'd like to keep it (emotional attachment) but I'm highly confident TSLA is a substantially better investment.
4. Home Equity Line of Credit.
5. Other?

My price target for undoing debt is about 1400 and I think I'm reasonably conservative in thinking we will get there within 3 years.

All wisdom and perspective appreciated.
Not advice - I would look at the HELOC for cash - then use cash to buy ATM puts or slightly ITM - that gets you an immediate discount for the shares and a way to leverage up.
Or use premium to pay down / off HELOC
again - not advice
Thanks @UltradoomY. Can you tell why you prefer HELOC over margin or a refinancing?

Regarding options, I have to confess, out of my 30 year investing career, I was below average up until a year and a half ago and it was one good pick that tipped me into the above average category. I don't have the track record or confidence to tackle options.


Supporting Member
Mar 13, 2020
Tampa, FL
No reason other than the process to get the HELOC is way faster than the refinance.
Check out the thread - "The Wheel" for an idea of what I mean - selling an ATM (at the money) or ITM (in the money) put is very bullish if you want to buy shares in lots of 100 since someone will pay you a premium to guarantee them you will buy their shares at that price if it is "in the money"
Lots of research to do but it is riskier than just HODL


Supporting Member
Apr 25, 2015
Northern Virginia
Of course this is not advice, but I'm in the same position as you and am using #1 and #4 from your list. I'm selling OTM naked puts and using that cash to buy shares (keeping the tax consequences in mind). When we have a big drop in the SP like last week, I dip into the HELOC to buy shares (110 in this case). I then sell a covered call for 100 of those shares at a high enough strike price to pay off the HELOC and set aside some cash for taxes. When my CC hits, the 100 shares get called away and I am left with 10 new shares, which have increased in value.

I also have a rental property and would certainly look at #2 if I could take cash out and get a better rate. However, I would still want the property to be cashflow positive even after the refi, but that is just my (slightly) conservative side.
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I finally got a response from Schwab today. They've given me 12 months at a flat rate of 4.75. I'm pretty happy with that. Now we see if the price drops below 600 again. Next step will be to look into the HELOC. Thanks for the input.
Interactive Brokers charges me 0.07% margin interest above $1M, a little more for anything under a million
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