Creative Real Estate Financing

User Stats

22
Posts
7
Votes
Parker Larsen
  • Rental Property Investor
  • Saratoga Springs, UT
7
Votes |
22
Posts

HELOC or cash out refinance?

Parker Larsen
  • Rental Property Investor
  • Saratoga Springs, UT
Posted Jan 20 2022, 20:38

So I'm having some analysis paralysis with looking at a Cash out refi vs a HELOC on my primary residence.

To paint a picture, living in a townhome and will rent it out when we move in 2-4 years. I want to take advantage of the equity and invest in a property. I can do a cash out refi and increase my payment nearly $500 a month or I can get a HELOC.

The HELOC is appealing because I can use it when I find a deal and I only pay back what I use. But it also seems very risky to borrow against my primary residence. On the other hand, the cash out refinance would increase my payment to a point where I would cash flow only $100-$200 when I end up renting the place and moving out.

Anyone have experience with either? Do you prefer one over the other?

Loading replies...