Which should we do first? Cash out invesmtnets or HELOC on home?

4 Replies

We have been adding to value to our investment portfolio while our main residence has been appreciating, so now we would like to tap the equity in both. We do not want one to affect the other negatively so which one should we do first?

HELOC on our primary residence

OR

Cash Out refi on investment portfolio

Our thoughts:

The cash out will help our balance sheet and allow us to pay off short term debt, but will increase the debt to income ratio long term.

The HELOC will improve access to capital, but not necessarily resolve shorter term debt

What do you think?

@JR M. - How's your ability to qualify for financing? The good thing about the HELOC is you're only paying on money spent, which saves you money on interest and it gives you a lower DTI calculation when banks are qualifying you for your next loan.

I'd probably lean towards getting the HELOC first.