Advice please--cash out or line of credit?

[Maureen Rhodin]

I was fortunate to have a mom that made me invest in real estate in my 20s. I now have 2 properties that are debt free (15 year mortgages). I'm finally educating myself on these investments and find myself qualified for a commercial mortgage for about $400,000. I'm planning on purchasing another multifamily, but I haven't found it yet. I need about $60,000 for current repairs. Do I cash out the $400,000 at 3.8% or get a line of credit at 5%?. The cash will cost me until I find my next investment, which could take a year or more. I'm more comfortable paying a bit more to use the money when I need it. Having that amount of cash sitting in the bank is also asking for trouble...Would appreciate your wisdom--thanks!

[Matthew Irish-Jones]

Patrick Smith most lenders will not loan a HELOC on an investment property. There may be some local portfolio lenders that will consider it but generally the answer is no.
From the banks point of view there is more risk