Cash out vs HELOC question

[Mark Sheppard]

I am currently trying to figure out the best lending option to do the BRRRR process using one of my rental properties that has equity.

The property I want to use currently has about $100k in equity. My plan is to use this property for a few flips, so that I can build up some cash to not have to use this property as leverage on every deal.

My current lender is advising me to refinance the property and take cash out. However, I am concerned about losing my current interest rate since it is now considered an investment property and my overall mortgage will go up each month. I have asked them a couple of times to do a HELOC instead but, the lender is telling me that I will get a better rate if I do the cash out option.

Maybe I just need to find another lender that will do a HELOC on this property or maybe someone can give me some advice on how I can use this property to better leverage other deals. Looking for some financial advise and education on what would work best to leverage this property.

Thanks,

Mark

[Mark Sheppard]

Looks like no one wanted to respond, lol.

Either way, I think I figured it out. I can only take out a HEWLOC on my homestead. So.... I am going to go ahead and take out some cash and increase the overall mortgage to get another rental property since this one is considered a rental property.