Funding strategy for first deal

[Christopher Ward]

Hello everyone, 

I would like to obtain my first rental property next year  (fingers crossed).

I currently own a home 100 % clear (worth approximately 160k) and would like to use the equity to fund the down payment for the second property. 

I've been researching HELOAN VS cash out refi, and I think the refi is the better option. What is your opinion? 

Is it better to pull out only what's needed for the DP or is purchasing property 100% cash the better option? 

Do you have any ball park figures on what the cash out refi rate may be for the Burleson TX area?   If not, what's a good way to research those numbers? My credit is excellent.

Thanks, 

Chris