Heloc or Cash out refinance

[Chioma Okoko]

My parents house is paid off and they're looking to purchase a new home while renting out the old one. Should they look into getting a HELOC or a Cash out refinance in the old house for renovations on the old house and potentially a down payment?

[Eliott Elias]

If you can cash flow and float the monthly payments on the cash out refi do it, if you have cash that will be available to repay the HELOC in a short period of time do it.