Heloc or cash out refinance

[Justin B.]

Hey guys so I have a house thats fully paid off , it’s a condo I can prob get a heloc of about 177k would that make more sense or should I do a cash out refinance? I know the condo market isn’t for everyone but where I have my first one it’s a great return and great area. I want to get another condo without using my own money so to speak. Any suggestions would be appreciated

[Jaysen Medhurst]

@Justin B., a HELOC is a great option, because the fees are very low and you don't pay any interest until you actually find a deal and use the money--unlike a refi. You still have access to the cash when you need is, so you can make cash offers, assuming the property is no more than $177k.

The down side is that the interest rate is higher. On strategy is to use a HELOC to BRRRR, then refi and pay back the HELOC. That locks in lower interest rates long term and puts your capital back in play.