Cash out refi or HELOC?

[Madison Heck]

Hi all! I am close to purchasing a property in upstate New York with a friend. We are planning on employing the BRRRR strategy and want to outline what our plan is for generating capital for the down payment of our next property (and each one after that).

We are planning to put 20-25% down on this first property, then are debating whether to refinance for cash or take out a HELOC on the first property.

Which option makes more sense for us in your opinion? And is there any amount of time that we will have to wait after we close? I'm seeing 6 months for a refinance in a few places but also that it depends on the lender.

Any help is appreciated! Thanks