Should I use cash or heloc?

[Michael Macaluso]

Hey all! 

My name is Mike and for the past few years I have been trying to buy my first property. Finally, in two weeks, I close on my first one. I house hacked a single family side by side that is in need of some cosmetic tlc. I bought the house for $130,000 with a fha 3.5% down loan. The appraised value of the property is $160,000. My plan is to renovate the house while living in it and eventually(after one year) make it a rental. 

My question is should I use my own cash or the bank’s money? 

The house needs around $20,000 worth of repairs. I have that money saved in cash. However, my goal is to eventually buy more properties, and would like to have that cash on hand. 

If you were in my position, just starting out, what would you do?

If you were to chose to use the bank’s money, which route would you take?

I’ve heard all sorts of things like home equity loans, lines of credit, etc. But, I’m still confused on the best choice. 

Thank you!