HELOC or Cash-out refi?

[Ashly B.]

I understand the difference between the two, just curious if there's a reason to choose one over another. Current mortgage is for $60k at  around 3.5%. House was valued at $100k when I bought it a year ago. After $50k of renovations, I'd like to roll up some of the debt I took on from renovations and take out additional for my next investment. I've done a little market research and think it will value between $200-250k (its hard to find comparables for a 4-plex so I'm struggling to get a closer dollar amount...not sure how much comparable number of units plays in?). Anyway, since the house was worth less when I took out the original mortgage does that impact the amount I'd be able to pull or do they reappraise either way so doesn't really matter?

[Thomas S.]

The major advantage of a HELOC is you only take out what you need when you need it and you only have to pay interest if you choose. A HELOC is a on demand revolving bank account with 100% flexibility on the available limit.