Sell or refi a rental property?

[Hyung Park]

Hi all, I’m in north of Atlanta, GA area and I have a rental property which is all paid off. I need to pull some money out for personal use and as I’m doing it I’m thinking about freeing up some cash so I can invest back into real estates as opportunities arise in short future as people expect. My question is that would it be better to sell it now or pull the cash out and refinance? I’d appreciate all your comments and advice.

[Joe Cassandra]

Hey Hyung, also in N. Atlanta. Nice to meet!

If you plan to do more investing, I'd go with a HELOC. It's flexible and you can use the cash at will. Say it takes you 6 months to find another property, you aren't paying for interest like you are with refinancing.

I only recommend refinancing to folks (I'm not a banker) when you're trying to get out of a HML loan, high interest loan, or a sub2.

If you own it free and clear, I'd stick with a HELOC. Plus, you don't get this big wad of cash that can easily start 'slipping away' due to buying things here and there, if that makes sense.