Cash Out Refinance or HELOC

[Rickey Wiley]

Hello BP Family,

I have been searching the forums for my needs when it comes to financing my next property and I'm still stuck at which decision to make (Side note I am an active RE buy-and-hold investor). Here is the situation I am in:

I have a mult-family Duplex I am looking to purchase around $150-200K. At the current moment I have 5 other properties (5 separate loans) with not much equity tied up in them since they were all purchased within the last 4 years. After speaking with lenders the most I could get out on one of my properties using a cash-out refinance would be 10-12K. My next purchase would most certainly require 20-25% down going conventional.

My question is how will I need to go about financing my next property in the situation I'm in. I have heard about doing a HELOC but haven't really understood how that works or what steps I'll need to take. Should I start looking for a down payment assistance program I mean any and all advice will be helpful for me if someone could please help with the dilemma I'm facing.

-Thank You

[Keyonte Summers]

HELOC are essentially lines of credit from one of your property from the equity you have in it. If you are saying you dont have much equity that solution would work. I would suggest bringing in a partner or hard money lender to help finance this MFH