Using Home Equity to begin BRRRRing

[Justin Dean]

So, my wife and I bought our first real estate property two years ago as our primary residence. I did a VA loan with 100% financing. The home has been a fixer-upper and we now have estimated 60,000 of equity if we were to do a cash out refinance. We originally bought the house with the intentions to have multiple exit options. We obviously are at that point now but have been hesitating due to the interest rates. We currently have a 2.7% APR on this property and would be going into a 6% if we did the cash out. In the recent episodes I seen where David Green talks about not using interest rates as a metric of investing if it gives you paralysis (NOT HIS EXACT WORDS). Due to this I am debating about doing a HELOC or a Cash Out Refinance now. I know that I would only be able to take up to 80-85% of the equity if I did the HELOC route but I feel that it would be a better option since I do want to do the BRRRR method moving forward; However, my wife and I have been looking at having our current resident as a rental as well and moving up house. Basically, we are wanting to combine the STACK method (William Turner) and BRRRR method (David Green). I have the end goal of wanting financial freedom through real-estate and being able to cash flow my kid's college when that comes. (They are two and three this coming up year) My wife's goal is to have a home for us and the family she can see herself living forever and our current one is not that.

Due to this scenario, I am wondering what is everyone's suggestion moving forward? Is there another product or option on the market that I am not thinking of that may be better. Is there anything that I may need to look out for when moving forward with either option?

Also I put Savannah, GA but I live near Valdosta, GA.