Equity loan or line of credit?

[Michael Maloney Jr.]

Hello there bp. I have a question I've been pondering for about a week now and can't decide. I bought my first home which is a fixer upper a year and a half ago for 125k since then payed it down to 122 with plans to pay it off between 10-15 years and stay there. Since then got into the investing side of things and want to sell it for a profit and do another live in-flip with the profit. So last week got ahold of my real estate lady and she gave me comps and estimated my house in perfect condition at 190-200k. My house still needs cosmetic work like flooring and paint and some new appliances before I sell it, well added it up and wanted to borrow 10,000 against the house and fix it up using their money basically and sell it this spring. Then buy another fixer upper or foreclosure, and do it all over again and again until I can afford two houses at the same time. So the question is should i pull out a home equity loan for 10,000 at 30 years with a 6.6 fixed rate or do a line of credit for the 10k at 5.625 which is an adjustable rate for 5 years? The bank will pay for the fees for the equity loan if I keep the property for 3years or more which I won't so I'll end up paying those at closing I'd imagine. The whole reason for this is to get cash to make it "perfect condition" so I can sell it for the most profit.

[Charlie Fitzgerald]

I'd leave it as is, let the buyer pick the colors and flooring and appliances they want, and discount the perfect price by $10,000 and sell.