Which one is better for a long term, HELOC or HELOAN??

[Berenice Barrot]

My rental property have a good amount of equity. My plan is to use it to invest into a multi family. With how the market is acting and interest rates so high. Which is better for me to get now a HELOC or a HELOAN?

Any advise, please!!!

[Joe Jackson, Jr]

Hi Berenice,

I personally use a HELOC out of my primary residence to invest.

I prefer the HELOC because of the flexibility, if I'm not using it I'm not paying for it. Also being able to just pay it off and reuse it over and over again.

Now, I don't have a huge portfolio but when I was in a similar situation, my bank only offered the refinance option on an investment property and the HELOC was only on your primary residence.
Not saying this is the case for all banks but be sure to confirm that is an option for you.   In my case, I refinanced the investment took the cash and paid off the HELOC and began looking for the next property.