Cash out options
Hi everyone
So I close on a property this Friday (yay!) and was thinking today about ways to refinance it. I will be paying cash. I have talked to a few banks and I have a few options:
1. Identify next property and use equity in this one to buy the next. I would then have one blanket loan for 2 properties and only one set of loan closing costs.
2. Refinance to a fixed rate and get cash out. I can still cash flow on a 10 year note up to 6%. Rates are looking to be about 4.3%. This would be at a local community bank so I may not even have to wait the full 6 months seasoning. They are willing to refi once leases are in place. Obviously getting my money out quickly sounds appealing.
3. HELOC. I like this idea because I wouldn't have to keep getting loans but the interest rate is higher - around 7% and the rate is variable.
What do people prefer/find has worked best? Or should I just go with the lowest interest rate available regardless of flexibility? Thanks for any comments/suggestions.