Updated almost 8 years ago on . Most recent reply
Cash out refi or HELOC on primary residence
Please forgive me if this is a dumb question. I'm brand new to the idea of real estate investing and am trying to formulate a plan in order to acquire my first rental property. My primary residence is worth $250k and I owe $130k on my mortgage. I am trying to scrape together some cash for a down payment on my first property. Do I ? A) Do a cash out refi for $200k and use the $70k to payoff a high interest truck loan and then use the remaining $49k for 1 or 2 down payments. OR B) Get a $50k HELOC, pay off the truck ($21k) leaving me $29k for a down? I guess I don't understand the pros & cons of the 2. Please help