100k line of credit vs 15yr loan

[Wilson Jing]

Good evening everyone. So I own 13 free-and-clear SFH in C/D class neighborhoods net income of 30k. With 6 properties as collateral local bank offered me 100k with 6% interest. (this portfolio lending I think) My options are 1. 100k line of credit. 6k origination for 1st year (includes appraisal fees, title searches, bank fees etc) and subsequent years 2.5k 2. 100k 15yr loan with 5yr at 6% and ballon payment at the end of 5 years 3. 100k 15 yr loan with 5yr fixed 6%, 10 yrs variable with 4% floor and 8% ceiling Currently I do not have any properties in the pipe line for purchase. So far in my real estate investing career I had the good fortune of not having to take on debt so refinancing sort of intimidates me. For the future of my business I would like to expand to multi families. So the good people of bigger pockets I would like your advice. 1. Would you take the 100k refinancing? More importantly why 2. Which refinancing option would you take? I'm leaning towards 15 yr 5yr fixed and 10 yr variable Thank you in advance for the advice.

[Melvin List]

@Wilson Jing If you don't mind paying the interest while you find a property I would go with the fixed option. When rates go up the HELOC payment could go up quickly. Keep in mind that if you close a refinance in mid September your first payment will not be due until November 1st giving you some time to find a new property to purchase