Pros and Cons of HELOC vs Cash out Refi

[Azita S.]

If you had equity in your rentals and wanted to leverage that to purchase new rentals, given today's market, would you do HELOC or cash out refi for down payment on new properties?

[Paul Shannon]

Agree with @Alex Olson that a HELOC offers better flexibility. I've used my HELOC on my primary residence to purchase rentals in cash. BRRRR strategy. Once they are stabilized with a tenant and seasoned, I do a cash-out refi on the rental and pay back my HELOC, thereby recycling the capital.