Texas: Cash out refi vs HELOC

[Gregory Schwartz]

I had planned a BRRRR with a 4 plex that I'm house hacking. Originally I had planned to refi using a VA loan BUT here in Texas the rules concerning Cash-out refinances prevent pulling more than 80% LTV. With that being said would you all recommend conducting the cash-out refi or get a HELOC. The goal is to free up capital for another BRRRR likely 2-4 units.

Current mortgage principal: 223k

Current value: 335k (80% = 268k)

[Jennifer Ryan]

The HELOC can only be against your "Primary" residence, your Homesteaded property. If you change Primary residences, you'll have to pay it off. If move and are just renting but keeping that property as your Primary, I doubt they'd care but you should ask them upfront before you get the loan.