Hi,Can anyone share some thoughts and/or past experiences of taking out a line of credit or doing some type of cash out refinance against land that is owned out right?

Homestead Property Tax Credit arrangements [spelled out here: http://www.michigan.gov/taxes/0,4676,7-238-43535_4...].

In the meantime we are still repairing credit from an injury that took a toll on our income.I would love some advice from some more experienced investors on the best use of this small amount of cash that we Will be coming into in the next month.

If you are in a position to get credit, leverage created through mortgage debt is an excellent driver for building up wealth.

If so, have you tried asking the local banks and credit unions for a commercial or portfolio loan? 

You can get lines of credit for your business that you could use to buy real estate, but I would be very surprised if they gave you the loan specifically to buy real estate.

Its your money before and after the transfer.A credit card is the same. 

That's okay if you need someone to manage for you, but if the facility takes cash I would switch it to credit card and auto-draft only (maybe checks too).

I'm not sure how credit and loans and stuff like that work.

Prepare for the highest I would say 25% down they will also look at your debt to income ratio as well as everything they looked at the first time, credit, income etc.