HELOC or Re-Finance, which is better?
I am interested in adding an addition onto my personal residence and am trying to determine what is the smarter financial decision for our situation.
Our house currently has a good amount of equity to help fund the project. We need about $100K to complete the job. We have the cash but also flip houses and are interested in buying notes so cash is key for us.
Do we put the cash into the house and then get a HELOC or Re-Fi afterwards to use the cash to invest? Or do we get a HELOC or Re-Fi now and use that money towards the addition? What factors am I not considering? Are there advantages/ disadvantages on a HELOC or a Re-Finance?
Home purchase price: $308,000 (Current Market Value: $350,000)
Mortgage Balance: $237,000
Addition: $100,000
ARV: $475,000
Thanks in advanced for any insight for us to consider.