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Updated over 7 years ago on . Most recent reply

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Doug S.
  • Real Estate Agent
  • Nampa, ID
0
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1
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Cash out refi or HELOC on primary residence

Doug S.
  • Real Estate Agent
  • Nampa, ID
Posted

Please forgive me if this is a dumb question. I'm brand new to the idea of real estate investing and am trying to formulate a plan in order to acquire my first rental property. My primary residence is worth $250k and I owe $130k on my mortgage. I am trying to scrape together some cash for a down payment on my first property. Do I ? A) Do a cash out refi for $200k and use the $70k to payoff a high interest truck loan and then use the remaining $49k for 1 or 2 down payments. OR B) Get a $50k HELOC, pay off the truck ($21k) leaving me $29k for a down? I guess I don't understand the pros & cons of the 2. Please help

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