Cash-Out Strategies...Any Advice?

[Scott Weaner]

I recently purchased my 9th unit, the first one bought all-cash. I am in the process of a rehab, and then will want to have access to the equity. I really don't need the cash immediately, but will have other expenses (2 in college next year) and will need access.

I have thought about getting a HELOC on the rental property, but seasoning and the % out may not make that option ideal.

I also thought about simply increasing the HELOC limit on my primary residence. This would be easier, I think.

Any ideas for me? Criticism? Other strategies?

[Jerry W.]

Any chance that you can use the cash flow off your paid off properties to meet your college fund needs? If not the line of credit may be your best option. Despite the interest rate being lower on a fixed loan, it will be more than offset by borrowing more than you need now to have for tuition in the next 3 years. With the LOC you just pull it as you need it.