HELOC vs. Cash out refi

[Dominique Long]

Hey guys,

I haven't been up in so long but I have a few questions. I recently bought my first triplex in February of this year and now I feel ready to buy my next one. I would like to buy a small townhouse condo for about 50-60k and was reviewing the options that I have. I don't believe I am able to do a cash out refi or HELOC because after doing some reading on it depends on what your house was appraised for and what you owe. So the only difference between the two numbers is about 5,000. My home was appraised for 198k and my balance left is 192k at 3% so I don't have much wiggle room. Is there any other options that you guys can help with? Am I correct with how HELOC and cash out refi works? I really would prefer to buy it out cash but I guess we all would love to do that LOL.

Let me know what you guys think!