HELOC or CASH REFINANCE ON MY HOUSE?

[Abad Marroquin]

Hi everyone! My primary residency is a house that I own free and clear. I am planing on using that equity to invest in multifamily apartments. What do you recommend, getting a HELOC or refinance it? I was thinking refinance it because I can get better terms. I would like to see what other and more experienced investor recommend. Thank you in advanced! By the way I already have two loans on my name and 70% of my income is coming from my rentals.

[Bob Okenwa]

@Abad Marroquin

Yes, 79k out of 80k used on a HELOC would hurt your score as your utilization would be 99% and basically once you get to 90% utilization, you're considered maxed out.