Heloc vs cash out refi on current primary to purchase a STR

[Caitlin Stables]

We own our primary with an FHA loan currently and we should have about 80k or so in equity based on comps. Is there a better v best way to go about this? We ultimately want to own a few local STR's in the Richmond/Central Virginia area and this would be our first investment purchase. I am a local Realtor here so I have that leg up but as far as the funding and financing options go I am totally green. Any help would be appreciated!!

[Jacob Sloop]

Hey @Caitlin Stables

There's a ton of info on here on that subject and it depends on your personal situation to some extent.

I would start talking with some local banks and tell them what you're trying to do. The terms on HELOC's have gone up quite a but in the past year so you need some numbers to make sure it even makes sense... If the interest rate is too high etc.

Also what does your current mortgage look like ?    Terms aren't the greatest for a cash out refi either, especially if you have snagged a 3-4% interest rate in the past couple years..