Cash out refinance vs. bank loan

[Kayla Jacobson]

Hey everyone! Newbie here. I own primary residence turned duplex that I am house hacking at the moment. Our next move is a live-in flip this summer someone in Utah County. To fund this next deal I am curious to know what the best route would be. There are two options I can think of (maybe ya'll know of something better). *We will use a VA loan on the next one so 0 down*. 1. Do a cash out refi on our current property which will probably give us around 50K we could put towards the rehab and any other expenses. 2. Get a loan from the bank for the rehab and save the cash out refi for a third property this fall.

Hope the scenarios make sense! I'm open to other ideas I may not have thought of yet either. Thanks in advance. 

[Gary Parilis]

Think about a Home Equity Line of Credit (HELOC) also. A cash-out refi is a good idea if you will use all $50k. But if you aren't, or if you're using it short term and then recovering the cash, a HELOC is better. It's a line of credit, and you only pay for what you use. With a refi, you're taking on an extra $50k of debt, and paying interest whether you use it or not.With a LOC, the funds are always available, but cost you nothing when you're not using it. Like a credit card. Also, typically, your minimum payment is only interest, which is great for a fix & flip or a BRRRR, where you just need the funds for a few months and then will get it back.