Updated almost 4 years ago on . Most recent reply
Cash out refi or HELOC?
I have been trying to buy an investment property for several months now, unfortunately each time I place an offer, I am beat by an all cash offer.
I currently own a rental property that has appreciated about $500K since I purchased it back about 10 years ago. I don’t really want to sell it, as I am a buy and hold investor.
My question is, can I tap the equity in my rental property to pay all cash for another investment property? Should I do a HELOC, or a Cash out refinance?
I haven’t done either of these before and would like your opinions on what the best way would be so I can start competing all cash and finally get my offer accepted? Thanks.
Most Popular Reply
Yes, you can do either of those. Cash out refi is best for long term. Get a lower rate, take cash out, leave some equity in. Make new offer or two. Screen tenants, collect rents, pay down both mortgages. Stabilize your portfolio.
Do it again. Take funds and buy 4. Stabilize...