Expanding strategy Refi/HELOC Advice

[David VanWert]

Coming into a piece of property in Friday Harbor Wa that we are going to convert to a STR. The property has a significant amount of equity with debt of around 150K and value of about 700K.

Question is, would like to expand that into additional properties by leveraging this property and what the best strategy might be? Here are some of the options that I have been thinking about and would love input and feedback. Thanks!

Option a. 75-80% LTV HELOC will give us around 400K to invest, do we use that to buy 3-4 additional STR's in various areas and use the net profits to pay down the loan fairly quickly, rinse, repeat

Option b. Cash out refi to take advantage of the lower fixed rate and buy multiple properties.

Option c. Buy one or two properties out right and have those cash flow very well and have the ability to leverage those

Option d. Something I'm not considering? 

Currently our strategy is STR's in year round vacation areas, one in Mammoth Lakes Ca and a new property in Pigeon Forge TN. I think we would keep with this strategy of areas that rent well year round and have a long history of STR's. But... open to investing options not being considered.