How to take equity out and buy another investment property?

[Wojciech Grajewski]

Hello,

I own a home on Long Island that is currently worth about $500,000. The house is fully paid for. I have about $48,000 in cash and would like to purchase my first investment property. Should I do a HELOC? Can I do a Cash-Refi? I do not want to do much if any renovations and with that said that houses are going for about $375,000 - $450,000. My Income is about $65K a year. What do you guys recommend I do? I would like to close within the next 6 months.

[Sasha Mohammed]

Depends on the terms of the HELOC. Personally, I dont like the idea of adjustable rates, especially in an environment where are rates are going up. I would rather a cash-out refi on a fixed rate, and use those funds for the next investment.
There is something appealing about having re-occuring access to those funds with a HELOC, but IMO, the cons outweigh the pros on a HELOC. 

There's no one-size-fits-all in mortgage, though, so I encourage you to look into the rate differentials between the two options, and pros and cons for both. I tend to prefer the stability of a fixed rate and payment to be able to plan for future with definitive numbers, as opposed to being at the mercy of the market on what my rate and payments will be down the road. Just my 2 cents, hope this helps!