Heloc Vs cash out finance

[Jay Patel]

Hi,

I am close to Huntsville and I have done house hack twice on which I have mortgages so I am good there..but two of the houses I paid cash out and fixed it and have rented it. Since it is more than one year I own the house I was thinking to do cash out financing on 2 rentals...they both are worth around 125k and get 1500 rent.

I went to lot of banks and everyone is quoting about 4000 dollar closing costs for each house for cash out financing. Which is about 3 months of rent but i can deduct thay in my taxes against rent.

Or are you guys using Heloc as I won't be able to deduct that from my rent is what I read.

Also is there a better way to find lender with less fees for closing for cheap investment rentals.

Currently I have 5 rental. 2 with personal home mortgage and 3 paid cash so no mortgages.