Home Refi or Sec Mortgage?

[Bill Patrick]

Hi all!  Great forum and I hope to learn a lot hanging around!  My situation - I own my own home in NY free & clear with no outstanding debts.  Credit score is north of 800 as well so we're doing ok.  My daughter, a single mom, needs a little help so I'm looking to help her get into a small condo for the time being.  She can't get a note so I can either take equity out of my place or get an "investment property" type mortgage and let her pay the rent to cover the payments.  My question surrounds which loan route is best?  With the refi, the won't be points so it's probably cheaper and quicker but are there pro's to going the other way (tax benefits, etc) or is this an easy answer?  Any thoughts, comments, suggestions or recommendations would be most appreciated from this new investor!!  Thanks!