Refi pull money out Vs HELOC

[Kevin Clayton]

Looking at finance options to leverage an investment property. Creating an LLC to transfer the property into and looking to build credit/ establish the loan via the LLC. As rates rise I'm wondering if it makes more sense to refi and pull the entire amount for future projects (around 200k) or setup at HELOC. From my understanding the loan will be fixed and but points will be added because Its an investment property and money is being pulled out. This brings up the monthly considerably as the project will be a year or so till cashflow come from the investment Vs the HELOC - only pay on money being used could potentially have a lower interest rate but more of a hassle if the HELOC is paid off/rolled into loan later or rates rise.

Two projects (ADUs) will take 6 months to a year to complete. 

I’ve been a. Member foe a while. Looking to engage more with the community as I work on
my next investment goals.

Thank you. 

[Kevin Clayton]

Quote from @Nicole Heasley Beitenman:

Because a HELOC can be used over and over again and has no payment when it isn't being utilized, it typically gets my vote.

That makes sense. I used a HELOC years ago and was not thinking as an investor. Some of my not so great decisions are sneaking into my future thoughts about using a HELOC. Namely, the adjustable rate.... In this case, it's for an investment that will provide enough return to pay down or paid off the HELOC for reuse at a later date. Hopefully 6-8 months down the road.