Line of credit vs a cash out refi

[Jon K.]

I've been talking to some commercial lenders who are willing to extend a line of credit on investment properties in certain conditions with no restrictions on its use like a HELOC. Up to 70% LTV provided they're the first lien on title and for a minimum of a 100k line.

I'm considering doing this on a recent BRRRR acquisition whose ARV should come in around 230 - 250kish instead of a cash out refi. So potentially a line up to 175k.

My cash flow and profit on the unit both increase and I can still use the capital for future acquisitions. I'd only pay interest on the money when it's being used on another property and they would be interest only payments.

Just wondering what folks thoughts are on this. The alternative is to lock in a 30 year fixed with today's super low rates