Cash out Refinance advice or HELOC

[Richard Miller]

So, I got denied a HELOC twice and when I tried another bank, they stopped taking applications because of the virus/economy. Not sure where else I can apply for one. But I can do a cash out refi. I currently have 1 rental property and would like add to that. I feel as though there will be a time in the some what near future where home prices will go down. I would like to have some liquidity during that time so I can purchase something.

Should I do the cash out refi? or wait for HELOC be offered again? I just like the HELOC because you can always use it and it doesn't add to the mortgage.

Any ideas or advice would be great. 

Thank you!

[Jaysen Medhurst]

First off, @Richard Miller, I wouldn't stop with just 2 banks in your search for a HELOC. Call every single local bank and CU and see what's up. BTW: is this for a personal residence or investment property?

Whether or not to do a cash-out refi (if you can get approved for one) really depends on a few factors:

Debt service vs. liquidity: Right now you want as much liquidity with expenses as low as possible. Where do you stand with each at the moment? Unless you're very strapped for cash, I'd be hesitant to increase expenses right now.