HELOC - Does this sound reasonable to you guys

[Casey Miles]

Hello Everyone,

I finally found a local bank that will do either a cash out refi or a HELOC on investment properties. The issue I was running into was having over 4 financed properties. Anyhow, do these #'s sound reasonable to you guys? I feel lucky enough I found someone but I don't want to pay too much either. They will do 75% LTV on all scenarios below.

HELOC

Prime + 2, currently 5.25%, They charge 1 point plus title/appraisal. They'll hold it open for 36 months. After that we have revisit another HELOC and I'd have to pay the same fees again. Interest Only payments amortized over 30 years

Cash out Refi

7/1 ARM, 4.375%, 1.5% points plus title/appraisal

5/1 ARM, 4%, 1.5% point plus title/appraisal

I'm actually thinking of doing a cash out on one property (it has a higher fixed rate now) and doing HELOCs on two other properties. The plan is to buy futures investments with cash (to hopefully get a better deal) and then refinancing the home to pay off the HELOCs, rinse and repeat.

I meet with the banker tomorrow morning so any feedback regarding questions I should ask would be appreciated. This is my first time with any of these types loans.

Thanks,

Casey