HELOC vs. Cash Our Refi

[Marina Startseva]

Hi all! Newbie here (7 years of experience of running real estate investment fund but first deal of my own). I am ready to buy my first rental using BRRRR. I am pretty much clear on the B and first two of Rs. My question relates to the 3rd R, which is "Refinance". Property will be in LLC due to certain restrictions that apply on a family level so I am limited to everything that is non Fannie/Freddie conforming. I am deciding between non-owner occupied HELOC or commercial refi loan. I am inclining towards HELOC since 1) I see certain credit unions offer up to 80% to 90% of LTV; 2) I will not immediately need all amount of available line so I may make draws as needed. Also tempted (very much) to use % only option that comes with many HELOCs. Any advice against using non-owner occupied HELOC to drag money out of the property? P.S. Will be buying all cash. TIA for your opinions.

[Marina Startseva]

Thank you! Yes, I am coming to this realization...

Originally posted by @Dave Skow:

need to focus first on locating a lender (s) that is able to lend to a LLC ( there are not many ) .....once you locate these lenders , then ask what options for loan programs they have ......there will not be as many options as compared to taking the loan in your personal names ( which it sounds like you are already aware of ) ...good luck