New to Real Estate · Bel Air, MD · Member since 2021 · 5 posts · 1 vote
Hello,
I currently own a condo that is fully paid off (market price is ~$140k). I was wondering if I should pull out equity via a cash out refinance or HELOC. I am able to afford the extra payments and was primarily wanting to use this capital to scale my real estate portfolio via BRRRR. I thought that a HELOC was the way to go as I am able to access the capital multiple times at any time, however, after listening to David Greene's Q&A, he said that a cash out refinance would be better.
If I were to invest into commercial or multifamily real estate, a cash out refinance would be better, right?
Any advice would be appreciated! I linked the Q&A for reference (David discusses this around 3:44): https://www.biggerpockets.com/...
I think you answered your own question. I read his transcript of the podcast and if your looking to hold onto it for a long time, the cash out is the better option. Look into the multi unit, if you're single, maybe house hack it and remodel and rent it at the same time. I'm in the same boat. I have about the same amount in equity and trying to figure out the best way to start making smart investments.