HELOC vs a Cash-Out refi .... Pros and Cons of each ??

[Michael Dunn]

Hi,

I need some help in figuring out what my best course of action will be , given the following situation.....

I am looking to Get the Equity out of my Primary come the first of July ( about 3 - 4 weeks from now ).

I have right at $40,000 of Equity in the property.

A Lender told me that I can get up to 100% of the Equity out of the house via a VA loan

So given the 100% of Equity with a VA loan Refi . , would a HELOC even be something I should consider ?

Here is what my goal is, with the use of the $40,000 of Equity :

I am looking to purchase a property for around $45,000 + $5,000 ( for two sets of Closing as well as the Appraisal ) = $50,000 Loan I'll get from the Lender

$10,000 Down Payment ( 20% of the $50,000 loan ) + $25,000 in Rehab costs = $35,000 ..... Which I'd get the money to pay for this $35,000 via the cash I get ( $40,000 ) from the Refi. or HELOC .

This assumes the ARV comes in at $100,000 ( although likely $110,000 ), with an LTV for a Loan on the next Investment/Rental property being 75% = $75,000

So $75,000 from the LTV - $50,000 ( the amount my Loan will be from the Lender ) = $25,000 to use on the next Investment/Rental property purchase .... Wash, rinse, repeat

Thanks so much for any and all help