Updated over 9 years ago on . Most recent reply
Equity Line vs. ReFi for BRRRR strategy
Ok, this is most likely a simple question but I feel I'm putting too much thought into it and would like others thoughts and opinions. What are the pros/cons with going with a equity line on a rental property vs a refi of the property. I know that @Brandon Turner promotes refi the property. I wonder if there are any folks using an equity line to buy their next buy and hold vs. refi. a previous property to pull cash out. My first thoughts are that a equity line may avoid some bank fees that come along with mutliple refis. However, I fear I'm overlooking something.
What are some of the variables that come into play....I'm looking at rates, bank fees, appraisal requirements.
As always, thanks for the comments.
Jason
Most Popular Reply
Careful with the Michael Lush character, he's another GURU who wants you to send him money to get access to his special list of "HELOC" mortgage bankers. I found this to be a bit of a joke. Better strategy IMHO is to use a traditional HELOC on a property you already own to get access to capital needed to purchase additional rehab ready investments. Do your rehab, then refi and pull your cash out, paying off the HELOC and pocketing the diff.