Brrrr Vs LOC. Which is the better move?

[Maugno M.]

Banker told me i could either do a Cash Out refinance or that I can put it down for collateral and get a Line Of Credit. Whats the better move ? I thought maybe a line of credit because i only pay interest on the money i use, when i use it.

Thoughts?

[Brandon Sturgill]

@Maugno M. Not a real fan of BRRRR because it's not sustainable...you can pull it off a couple times and then your DTI will become problematic. Either that or your reserves will have to be sky high for lenders to hedge their risk on future loans. Either way, placing debt on a property will kill your cash flow...just a few thoughts.

It's all relative and your personal investing approach should be a heavy factor here.