Cash Out Refinance vs Heloc for Personal Situation

[William Nguyen]

Hi Bigger Pockets community,

My fiance and I purchased a home in December 2018. We had both our names on the mortgage and around $140,000 equity into the home. The current interest rate peaked our interest to refinance and remove my name from the current mortgage for potential investment opportunities. We both are currently saving for a down payment but are entertaining the idea of a cash out refinance or HELOC to expedite the process if we do find a property.

This potential property would only have my name on the mortgage due to her's being on our current house. I don't mind staying at this property for a year and then moving out so we're also looking towards the MFH/House Hacking route. We're beginners and are still slowly learning the trade of REI so most likely looking into turn-keys or properties that doesn't need full rehab. I'm looking for property in the general area since I would still have to owner occupy it if I go that route.

I'm not sure if we're on the right path or we should just forget about the Heloc/Cash out refinance options and continue to save until we have 5% (Home occupancy) or 25% (Investment MFH) down payment.