Heloc or Cash out refi

[Paul Lechuga]

Hey guys here's my scenario. I want to buy another rental property using my primary house as leverage. What is the better route a heloc or cash out refi? Jusy want to hear some opinions before I pull the trigger. Looking to access 100k I have 200k in equity. Thanks 

[Chris Armstrong]

@Paul Lechuga

HELOC cause your payments will not go up unless you buy. The assumption being that you buy something that cash-fows to address the new liability adequately. Remember though, HELOCS can have adjustable rates so payments can vary. Also fun fact, I just learned that you can refinance your primary home and keep your HELOC in place with a process called subordination. Got lower rate and kept my HELOC in place #boom.