Need advice on refinance to start out

[John Sheil]

Need some advice on starting. I will be researching more but any help is appreciated.  I'm in Denver and bought my house in 2008.  

Currently, I want to refinance into a 15 year but now I'm thinking of taking 30 year and getting cash out to buy a rental property. 

I owe 190k between primary and heloc. Want to get rid of heloc which is at 6.5%. 

Wife (realtor) thinks house is worth 450k, I'm more cautious and say 400k.  I'm not exactly sure what happens with heloc if I do a cash out and pay it off (will it still exist or does it close).  

My thinking is take 300k cash out, payoff heloc will still leave me 110k to buy a rental property. I have to run numbers more but if I have to take less because heloc. I can use cash out and heloc to buy rental. 

Eventually we want to rent the current residence out and upgrade so I haven't wanted a high mortgage on it. 

In 6-12 months I would take out on second property and buy a 3rd one. 

I have really been considering buying rentals in Midwest since I have family out there and Denver is pretty expensive at the moment. But will research that more later. 

From what I have read many folks have refinanced their primary and successfully started out.  

I have read a lot previously but have to catch back up. Any advice would be great. TIA

[Matt M.]

Call Elevations CU up off of 120th. See if you can get a higher heloc loan with a lower rate with them and pay off the other one. They loaned me 90% of my homes value at the time. They did a quick computer check on value, and it was in line with what I thought. 

It was 10x easier that doing a cash out refi and basically free. It took 2 weeks and little paperwork. Plus we got 90% instead of 80 or 75% on a cash out refi.