HELOC vs Cash Out Refinance

[Adam Howard]

Interested in gathering opinions on taking out a line of credit vs refinancing and pulling the cash out of my personal property to fund my next deal. I've saved $30,000 and I currently have about $100,000 equity in my personal property. Thoughts?

[Justin Phillips]

@Adam Howard I'm a big fan of the 1st position heloc, as you're able to pay down your balance with idle funds, then when a deal comes up you'll simply stroke a check. That way you're not paying for that equity until you actually need it. Then the new higher balance is brought down much faster with the added cashflow from the new rental. It allows you to snowball your debt, and finance all your future investments on the same line.