Cash out refinance or HELOC?

[Jason Chen]

I want to get cash between 100k - 200k from my property, and I will use the money to purchase more real estate investments, potentially out of state. I currently have options for either doing a cash-out refinance or HELOC. I know both options have pros and cons, and I am having hard time decide which approach to take. I would like to hear what others would do in a similar situation and why. Thanks in advance.

[Jared Skov]

I like the cash out refi in this scenario because the interest rate is fixed. Rates are rising and paying interest only on a HELOC seems a little risky when things cool off. Just make sure wherever/whatever you buy has a good cap rate. You're still young, so take your time with your stash of cash and just make sure you double and triple check the math before buying, it may be the biggest long term financial decision of your life. Your cash in hand is better than paying interest only while you find your investment property.