Cash out dilemma: 100% equity, get a HELOC or a mortgage?

[Liz Kazeva]

I have a multifamily property that I have made a lot of improvements to since it was purchased 1 year ago. I own it with a family member in an LLC. This person insists on getting a HELOC and their reason for it is because we will only pay for the money when we need it, but the rate increases with the prime rate. They also tried to tell me that if you buy a property cash, that you cannot take a mortgage. I think that getting a mortgage makes better sense because being full time investors, we will always need money. In addition, we can lock a rate while they are still low for a very long time.

My question: HELOC or mortgage?

[Alina Trigub]

@Liz Kazeva I'd start with mortgage, rates are moving up (slowly but surely). You are better off with a perm rate for 20-30 years.