Best Option for funding

[Amanda Glendenning]

We own a STR business in MO. We have 15 STR with two completely free and clear. I would like advice on which loan product would work best in the situation described below:

We want to use the equity in one of our paid off STR's to add value to another, specifically we are currently building a pool and hot tub. Originally, we planned to use cash for this project, but now feel we should keep ahold of some of our cash and use the equity in one of our properties to finance the remainder of the project. We have never ventured outside of bank loan products and are simply curious what's out there. Specifically, does anyone offer fixed rates on home equity loans or have any good ideas? To finish the project we will need approximately 250k. This is about 60% of the appraised value of the home we would like to pull equity out of. Again, this home is paid off.

Thanks, 

Amanda 

[Brett Thomas]

Cash out refinance is the way to go. If you have good credit and reported income, fannie and freddie/conventional would be your best option depending on how long you have owned the properties, this would be best rate, lowest cost out of pocket.