Heloc vs cash refi and dti

[Chris Barto]

Hello All,

Been educating for a while on BP and I thank you all for the education. I am attempting to go from analysis paralysis to action.

My primary residence was purchased through conventional 30 yr fixed rate mortgage at 3.875% and presently have approximately 100k-130k of equity in the house.

Option 1: Take heloc in equity of 100k on primary residence to complete a brrrr on a small multi family. Then repeat.

Option 2: Take cash out refi on primary with slightly lower interest rate to use the 100k to complete brrrr on small multi family. Then repeat

My concern with option 1 is that the heloc being leveraged at or close to the max amount Of 100k that the bank would be less willing to complete cash out refinance on the small multi family due to DTI

On option 2 not sure if There would be the same issue of DTI for the cash out refinance on the Small Multi family.

I saw one thread that discussed a DTI of under 50 to refinance out without issues? Also some banks that only look at LTV?

I am unsure if I am making correct assumptions.  I would appreciate any insight/ experience/ suggestions or other informative threads?

Thank you 

Chris