Should I do a cash Out first and then a HELOC?

[Tabesteph Moliki]

Hello everyone! Hope everyone had a fun and great Memorial Day weekend! In need of some help and would definitely appreciate it! Thanks In Advance! So I’m

Thinking of refinancing my home which I bought for under market value and it's approaching 6 months, but my the lender is motivating me to do a Cash out refinance first at 80% LTV which is their highest, which will remove PMI as well as give me a better monthly mortgage payment first. And then turn around and do a HELOC after for the remaining 10% of the property. Because he is stating this will help to get me a better rate and remove PMI first, and get me some cash back in my pocket. I was just wondering is this a wise decision? Because I planned on getting equity (cash) From the property to use to purchase another property some time next year, but just indecisive as to which is the better option to do first. I wanted to do just a simple HELOC, but he was saying it would not make sense to do a HELOC at 90% LTV, and then try to do another refinance to remove the PMI and get a better monthly rate. Any input on this topic would definitely help! Thank You All!