HELOC / HOME EQUITY LOAN?

[Amanda Hadd]

Hi,

So, I have a house that I paid $45,000 cash for. Now its value is estimated at $98k-100k. I'm interested in using as a collateral it to buy a duplex, rent out this home and house hack the duplex for a year and refinance to replace the line of credit.

I am self-employed and can't get approved for any loans FHA or commercial. But since I recently learned about the home equity loan or line of credit, I believe thats a good route to take. Yet, I feel like I don't understand it completely.

Which one is better for my situation? Any advice of the right next steps??

Thanks!