HELOC or cash out?

[Grant Smith]

Hows it going BP?

I know there has been touched upon before but id like some advice for my specific situation.

My current primary residence has about 100k in equity in it based upon my loan amount vs city appraisal. Local comps are showing about 80k in equity if it were needed to be reappraised.

My goal.

Im going to partner with a friend who doesnt current have any loans to buy a house with intentions to flip. He covers down payment in financing.

Im going to be project manager/ pay for the cost of rehab.

My question.

What is the best way for me to use the equity i have in my primary residence to pay for the rehab. HELOC or Cash- out.. Or if there is any other options entirely.

I look forward to hearing some expert advice

[Mark Bookhagen]

Heloc makes way more sense. The cost of a refi is substantial. With a heloc, the bank will usually pay for the appraisal and the closing costs. Also, are you sure you are paying PMI? I doubt you are if you put 20 percent down. PMI only lasts until you have 78 percent ltv based on purchase price (not appraised value) or 5 years in, whichever happens later.