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Cash buy from heloc on Investment property
Hello! We are new investors here. Our primary home is paid off. We would like to open a heloc to pay for off market cash only deals for an investment property. The BRRR method but buying outright with cash. Around 210k open line.
I have been told that it's better to take a cash out refinance on our primary residence to purchase a rental. Not sure if this is true. We aim to rehab and do a cash out refinance on the investment property and then pay the heloc off. Ideally within a couple months. So the interest rate here doesn't really matter all that much because we are going to pay it off relatively quickly anyway.
Here's my questions:
1) does it matter whether we use the cash out refinance or heloc? It seems like there's more fees involved with cash out because we have closing costs associated. There is only a fee for the appraisal with the heloc I believe. Pros and cons
2) if we purchase the property cash, is there a waiting period for how long you have to wait to do a cash out refinance on the rental property? Because we would need to pay back the heloc on the primary quickly.