Denver girl getting my first HELOC

[Crystal Wilson]

Is a heloc better than cash out refi. I own 2 condos both have 40-50 grand equity. Both rental properties. I love buy and hold and ready for burrr. What can I do to get a 4 plex? Determined to get one asap. Thanks!

[Ken Hobbick]

I prefer a HELOC to cash out re-fi due to the flexibility it offers and having access to pull money out or put it back into account to avoid interest charges. The HELOC will calculate interest different based on a daily balance as opposed to a 30 year amortization schedule in a refi.

There are strategies out there which you can use your HELOC in combination with savings- checking to pay down primary mortgage much faster.

The downside depending on your terms of HELOC along with flexibility comes changing rates over the length of your loan and have a plan in place when HELOC terms end.   I haven't had it happen but its possible the bank can reduce the amount of credit available in your HELOC...