Best way to get equity money out of my house for investments

[Derek Caldwell]

I am a new investor from Utah and I am looking to get cash out from my current home to get into real estate investments.

I have had my house appraised already and have approximately $90,000+ in equity. We have looked at a home equity line of credit, refinancing with cash out and a home equity loan. Current loan is at 3.5%, 30 year FHA but I am paying mortgage insurance currently.

Is this a good option or should I try and apply for a completely separate loan on an investment property or fix and flip? My hurdle may be debt to income ratio.  

There is a lot of fine print, that being said, I was wondering if anyone had any thoughts or advice as far as best options available, costs and ease. I want to get started and want to learn the market and know the options. Thanks in advance to any replies!

[Brent Coombs]

@Derek Caldwell, does your Lender still REQUIRE you to have Mortgage Insurance? It usually depends not on your $ equity, but your Mortgage PROPORTION of your home value (ie. Loan-To-Value Ratio). Anything above about 65% becomes problematic, especially if your $90k equity is still less than 35% of its overall value. Banks still well remember 2008! 

Have you had that "talk" with your Lender? And of course, by borrowing close to 100% for each subsequent property will REALLY eat into your LTV Ratio!...