HELOC or Cash Out Refi: opinions?

[Arthur Garcia]

Hey BP,

Here is my situation, I own a F/C property - value 55-605

I just found a local bank that will give me a HELOC at 4.5% for 10 years at 70% LTV. Another option is to get a portfolio loan with them at 6% for 30 years fully amortized @ 70% LTV (no seasoning req.).

My current strategy is to buy in cash and then do a cash out refi with the portfolio lender, get most of my capital back then rinse and repeat.

Considering I have access to lending, it seems that it would make more sense to not get a HELOC and just go for the cash out refi.

Anything I am overlooking?

I should also mention, I am a buy and hold investor.

thanks!

AG