Refinancing Triplex To My Primary Residence Question

[William Latti]

Hey Everyone,

First time poster, long time lurker.  I think I already know what I’m going to do, but wanted to get the forums opinion.  I recently sold my primary residence and am moving into one of the units in my vacation Triplex during this pandemic to ride it out and build up my cash position, for future deals.  It was previously at a 5% rate (25% down, property sold at 625k and is now worth about 675K) and I am refinancing it to my primary residence.  If I keep the loan as is the rate will go from 5% to 3.5%.  If I cash out still leaving 20% equity I can take the money out on the property on the refi, which I would use to purchase another property in the coming months, the interest would then be 3.75%.  The other option would be to take the lower rate and take a post closing line of credit (which would fluctuate).  The issue is this will only be my primary during the pandemic, so temporarily, then I am moving to another home that will be my primary residence loan, in likely 90 days, so the equity line would then either not be approved under the secondary home or be at a higher rate than the refi.  What would be your recommendation here?  

Thanks for any help in the decision!

Will