Cash-Out-Refi or Home Equity Loan Advice

[Bradley Chiakas]

I bought a 3 bedroom condo in Downtown Houston in 2013 with 10% down and a 15 yr mortgage. I put some extra cash into the mortgage and did some upgrades. I am slightly positive on cash flow, but now have 139k left on a property valued at 275k. I would like to pull 80k out along with 20k of my own and re-invest into new property.

I went full rental/passive income lifestyle last year. That means no earned income. I expect 149k of passive income this year. I'm not sure on a couple things:

1. Should I do a cash-out-refinance, or home equity loan? I have a 3% interest / 15 yr loan now.

2. How do I go about securing the cash-out/loan, and also the new property loan if I have no earned income?

3. I heard Tim Shiner speak and liked his approach of getting as many "doors" or cash producing assets as possible, while still maintaining a emergency fund. Anyone object to my suggested approach?

I have contacted my mortgage broker but have not yet heard back. Thanks all for your knowledge and opinions!

Bradley