HELOC vs Cash-Out-Refinance for fix and flip

[Alexander Chavez]

What would you recommend?

I plan on using the equity in my home for a fix and flip project in Chicago. The plan would be to acquire, rehab and sell within 6 months. For this would you recommend a HELOC or cash out refinance, and WHY?

What are the main differences between the two? 

Also any recommendations on a bank to do this with that offers good rates, will borrow above 80%LTV, and will cover the appraisal.

[Kyle J.]

For a flip, I'd go with a HELOC for two reasons. #1 - It'll be way cheaper to get (some banks don't charge anything, not even an appraisal fee). And #2 - once you sell the flip you can pay off the HELOC so you're not incurring interest charges while you're not using it, but if another flip comes along you still have the line of credit to use again and again.