HELOC vs Refi for reinvesting equity into more properties

[Lane Mobley]

Hello everyone,

I was just wondering what would seem to make more sense. I own a quadplex with approximately 70k of equity. I am looking at utilizing a HELOC to put down a down payment on another property and financing the rest via traditional bank loan. The other option is to refinance and pull out equity and then invest that equity into said property. I am leaning more towards the HELOC option that way I avoid the high closing costs of a refi. Anyone have thoughts or personal experience in this?

[Jay Helms]

@Lane Mobley -I'm a fan of the HELOC vs refi. As you mentioned, closing costs is the biggest driving factor but it is also the terms. What rate are you obtaining on a HELCO vs refi? Most banks I've dealt with are within a point of one another on these different products.