Cash Out Refi Advice

[Derek Ardmore]

Hello! Looking for some advice on our refi situation. We want to pay off our debt (car/credit cards/student loans/etc), and we also want to build a horse barn with living quarters on our property. We plan to do a cash out refi to fund our plans, and should be able to get $100k. Here’s my question, which plan makes the most sense:

Plan A: Use $100k cash out to pay off debt, and then use $20-30k as down payment for barn loan. The thinking here is that it would be easier to get a barn loan if our other debt was gone.

Plan B: Use $100k to pay cash to build the barn (assuming it will cost roughly $100k to build), after which we can get home appraised at a higher number and get another cash out refi to pay off debt.

Plan C: neither, there is a better way?