HELOC vs Refi on first investment

2 Replies

Need guidance on what's the wisest strategy to finance our first investment from an investors perspective. Various loan officers are saying either "refi on your home" others are saying, no "HELOC" is the best choice.

investment property is priced: $140k / apprx $7,500 in rehab. Rents are $1400 in that neighborhood.

Our homestead equity; $160k. We are looking to buy/hold. Please advise. Thanks.

It really depends, I personally use HELOC's when I can, then, as a I pay it down, I can reutilize the capital without needing to reapply for a loan.

HELOC's can be a little more risky though

if monthly payment amount is a high priority for you then a refi stretched to 30 years would be a lower hit

your ltv can be pretty trying high to pull 140K of your 160K equity out into a loan