HELOC on Two Family Purchased With Cash

[Peter Morrissey]

I found out I can get a HELOC on a two family I purchased and rehabbed with cash. Wondering if anyone has thoughts on doing this versus a cash out refi. I can pull out cash using either approach. One benefit I can think of is that I would only be paying on for use of the money when I was using it and I believe only on the interest. So in a sense, I wouldn't have a high mortgage expense on the property. The downside would be that I would not be building any equity by paying down the loan which would be due in ten years and amortized over 25 years. My strategy is BRRR, and my goal is building cash flow so I can quit my full time job and "retire." As I am getting close to that age, paying off the property is not important to me. I do however want to be careful not to be over leveraged.