Cash out refinance or heloc?
Looking to purchase my first duplex. I want to do HELOC with my house to purchase the rental. Then refinance in a year to pay the loan off. My mortgage company and my mortgage broker said it would be better to do a cash out refinance. Is anyone familiar with this? Would it still work to refinance down the road and be able to purchase another property? Either way I'm trying to purchase as many properties as possible, just not sure what the right decision is. Any input helps thanks.
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@Matthew Franklin
I did a cash out refi on my primary 3 years ago to pull 100k out to play with. I bought 3 SFHs with 20% down on each. They were worth a combined 350k when I bought them. They are worth 550k now. I have no regrets at all. I basically doubled my 100k I took out in less than 4 years. And have 3 good cash flowing properties. The interest rate on my primary is only 2.125% and my 3 rentals are at 2.75%. I’m all about borrowing cheap money! Good luck!