Which HELOC Terms would you pick? Why? Or REFI?

[Ryan Planchon]

One of my properties was recently paid off. I plan on putting a HELOC on it to BRRRR some properties with.

Which terms would you pick an why?

Term	12 Month Intro Rate APR* "As Low As"	Thereafter APR* "As Low As"
Principal-and-Interest Option 7 year draw / 7 year repayment period	1.99%	3.00%
Interest-Only Option 10 year draw / 10 year repayment period	3.75%	3.75%

Or would you just do a cash our Refi and use the cash?

Why I am choosing a HELOC.

Property is worth about $300,000. Rent is $1700. The property is in Miami, so taxes and insurance are high. Cash flow after everything without a mortgage is about $1000, $800 if your ultra conservative. I feel it is better to have access to a higher amount of cash via HELOC, and have a temporary high payment while a BRRRR is going on. The cashflow can cover most if not all of the payment for the HELOC while the BRRRR is going on.

I think I am leaning to the 10 year term for the lowest payments possible. Pay off the balance when the BRRRR is complete.

The alternative is to cash out refi, but will be less then what I feel I can tap with a HELOC, then also using all the cashflow taken for the long term.

Thanks BP!!