Heloc vs slow and steady

[Bryan Eugene Long]

I’m a new investor with one rental property bought and rented out a few months ago. So I have two different ideas how to get my next property and would like to hear people’s thoughts on both

1 use a heloc on my primary residence for my down on one or two properties, using the brrr method.

2 use current rental profit plus a little extra and save for the down which I believe will take me at least 4 years but probably 6-8 years accounting for unforeseen expenses. 

My goal: I’m 39 and plan to use rentals as my retirement, my goal is to have at least $9k a month positive cash flow to be able to retire. I would like to retire no later than my 60th birthday. The risk of option 1 makes me a little nervous and focused at the same time, I don’t want to jeopardize my primary residence. Option 2 is slow and I may not have time to reach my goal. It seems I have 2 roads to choose from is there a 3rd I’m not seeing? And what are the pros and cons of option 1 and 2?

[Brenden Mitchum]

@Bryan Eugene Long You can absolutely use the $ from a cash out refi for other properties. No idea regarding the difference in closing costs. I'm not sure of the specifics here so your best bet is to speak with your loan officer and find out which product is better for you. With HELOCs you pay for what you take out, right? But, that $ has to go back to the line of credit if you refi the home you purchased with HELOC $. With a cash out, that money is yours to do with as you wish. Then you just have a new mortgage on your home. That's at least my limited understanding. Either way you go what is important is that you do go. Take some action and reach out to your loan officer or lenders today!