Should I do a Cash-out refinance or a Heloc

[Cory Ray]

Hi Everyone,

So I just recently decide to get into the investing game. My current home right now has about 30k worth of equity I can pull out. Ive talked to a lender to get cash out refinance loan written up so I can see the numbers. My current mortgage interest rate is 4.75 with a mortgage around $600 per month. The cash-out refinance loan would have an new interest rate of 7.625 with a new mortgage payment of $948.70 per month. Ive looked at the average rent median in my neighborhood for houses similar to mine and it looks like I should be able get about $1200 for it. Ive talked to a buddy of mine that is a real estate agent and he told me to do the cash-out refinance and ive talked to another buddy who's an investor and he told me to do a heloc now because of interest rates. So ive gotta alot of mixed answers on what i should do. 

So my question would be in my situation what would you guys do? 

[Scott E.]

You have a 4.75% rate on your 1st?

Get the HELOC.