HELOC vs Cash Out Refi on Primary residence to purchase Rentals

2 Replies

Looking for guidance and insights from fellow BPs.

My primary residence is paid off, so what would be smarter...take out 300K to purchase in cash a couple duplexes via HELOC or Cash our Refi?? As I understand it, the HELOC is an ARM but it comes with no fees/closing costs, etc. However it can change with the Prime rates up or down. Looks like rates may be going down over the next few years. OR.. do the cash out refi on my home and get a low fixed rate for 15yrs, but that will come with closing costs. Anyone have experience with either/both?? Thanks

@Jason Thomas Are the fees and closing costs that much on the refi? I'd be more comfortable with that option, unless I'm also concerned that I may not be able to actually put the money to use for a long time.