HELOC or Refinance for my first property

[Jason Wamsley]

Greetings BP!

I'm new here and new to RE investing. I just started reading David Greene's BRRRR book and have a question for the group. My apologies if this is a silly question..

I currently live in a house I’ve “owned” since 2003, owe $51.6k with a monthly mortgage payment of $449. According to a quick Zillow search, my house would value at roughly $139k. I’d like to leverage the equity to purchase my first rental property while we slowly improve my current house to eventually turn it into a rental as well.

Would it be best to refinance and take cash out, get a HELOC instead, or refinance for lower monthly and then get a HELOC?

I’ve been reading up on the differences but still unsure what my best option would be. Also, we have about $10k in cash in play as well..

Thanks in advance!

Jason

[Erickson Sainval]

I would HELOC because it's like a line of credit. You have access to it when you want, but do not have to use it. You do not have to worry about too many docs or closing fees, and all that other stuff. It also helps in stopping you from temptation as refinance will directly put FAT STACKS in your bank account TAX FREE. If you know you can handle the responsibility go ahead, but just be ready for hurdles on the refinance.