Cash Out Refinance vs Business Line of Credit

[Dustin B.]

Looking for opinions along with pros/cons that I might be missing.

Would you rather take a cash out refinance on a property to pull excess equity out (80% LTV)? Or is it better to keep the cash in and utilize a business line of credit (75% LTV)? I understand the loss of 5% of potential cash out, as well as interest payments on the LOC. I do like keeping it in and that closer relationship that allows for easier lending.

Cash Out Refinance

Pros: Extra 5% mentioned above, somewhat more liquid, its 'mine' if the housing market does crash, keeping slight bit more leverage                    Cons: current inflation, 'higher' mortgage payment, closing costs each time cashing out. 

Line of Credit

Pros: Reevaluated every 2 years, extra payments can increase line (can set up sweep account), mortgage payments stay lower if line isn't utilized, keeps strong relationship, can be everlasting source of cash.                              Cons: interest payments on amount used, market fluctuations (if things go south), losing slight bit of leverage, not quite as liquid (but easy availability right now)