Newbie Looking for Input on Second Property

[Kevin Carroll]

I’m searching for some input on how to take the best advantage of my situation. Currently I am living rent free, and making mid 100’s. I have one rental house that I owe 160k on, and is valued at 380k. I’m cash-flowing 400 a month renting it out, and am looking to buy another house and live in it for a year or so before I convert it to a rental. 

I'm looking for the easiest way to use the equity from this property to pay the down payment on a property this fall. Rates are up, so I'm wondering if a HELOC would be better than a refinance? Any and all input would be wonderful.