Heloc or cash out refinance?

[Austin Webb]

I’m new to the investing world and am currently doing a house hack where my roommates pay most of the rent. I am in the process of refinancing so that my payment will be lower and roommates cover rent completely. I’d like to buy rental properties but I don’t know what the best option is for acquiring capital. Is it better to do a cash out refi or refinance and then get a heloc? Is this allowed? Can I do both? I’m very new to all of this so any insight is greatly appreciated. 

[James Holland]

For me, HELOC is always my first option. For a few main reasons. You get to basically use it forever.. so to speak. apply once, use it, flip a property, pay it down, and use the money again.

With a refi/cash out (I know you didn't mention) you use it once, and even if you pay it back down out of profits, if you want to use your equity again to purchase another property, you have to go through the whole process of applying, approval and all that comes after that all over again.

I love HELOC's