Cash out refinance or Heloc?

[Charles Salim]

Been interested in investing in Real Estate for over a year now. Just been trying to learn as much as I can through books and podcast. I own a home in Round Rock, Texas and it’s worth about 190,000. Still have some remodeling to do but houses are selling over 200s in my neighborhood. I owe 95,000 on the loan I’m in between doing a cash out refinance pulling out 50,000 to start my investment career or getting a home equity line of credit. I was leaning towards the refinance because it seem like interest rates are continuing climbing and heloc’s are adjustable. Any advice on this please?

[Andrew Allen]

Is the house your primary residence? You cannot get a line-of-credit on investment properties in Texas.

If it is your primary residence, I'd get the HELOC unless you think you're going to buy something else soon. Otherwise, you're paying interest on $50k that's just sitting in the bank. With a HELOC, you have it in your back pocket and don't pay any interest until you find a deal.