Cash Out Refi or Heloc

[Keyonte Summers]

Im weighing my options to see what’s the best route for investment properties. I own one property free and clear which was my original PR before renting it out. It cash flow around 350 a month have 100k in equity that is on a 70% LTV ratio. I’m currently in the processing of buying another PR and am going to sell property 3 for a nice profit. My question is on my free and clear property is it better to do a cash out refi and get a 15-30 yr mortgage or get a Heloc buy all cash . I’m attempting the BRRRR strategy but not going the private lender route. Let me know your thoughts

[Andrew Postell]

@Keyonte Summers the benefit to a HELOC is the ability to use it, pay it back, use it, and do this over and over again. These are great products for flippers for this reason. HELOC's are not good products for long term, permanent types of financing. HELOC rate are adjustable, so you won't be able to know your payment year-to-year, and after 10 years a HELOC "matures" into a different loan entirely. If you are buying and holding my suggestion is to do a traditional refinance so you can have a fixed payment. Feel free to ask more questions if you need. Thanks!