cash out re-fi -OR- heloc, no prospective property
i'd like to line up some funds in order to possibly get another investment property in the coming year. i look at properties quite a bit, but currently don't have any property in mind that i'd like to purchase. my thoughts are that i don't financially have my ducks in a row to even be seriously considered for a purchase if i wanted to even put in an offer.
i have some other rentals with a fair amount of equity that i'd like to use, either from a cash out re-fi, or heloc.
should i do the re-fi to pull out, say 100k, even if i don't have a property in mind that i'd like to buy? i know the heloc may give a little more flexibility to use the money "as needed". i've been weighing the pros/cons of each option. my rate right is 4.75% on my rental and i plan to talk to a couple lenders this week about what rates i may be able to get with a re-fi. i also like that the heloc would only be a few hundred to close vs. a few thousand with a re-fi.
my original plan was to have a fairly large heloc that i could just draw upon to pick up a property, and most likely have funds left over to rehab. my current rental is in CO and so far i've only talked to WF who will close a heloc with the collateral property being an investment.
i welcome any advice or thoughts.