Refinance or HELOC for 1st Rental

[Brad Blank]

I was given a property some years back as a donation.  So the property is free and clear of any debt.  Unfortunately, I was not able to use it as rental property and start my venture into real estate investing until now.  The property is in need of some TLC, such as paint, they were heavy smokers and smoked in the house, appliances, and some updating.
Trying to decide if I should do a refinance or use a HELOC to make the repairs/update to get started. With the high interest rates now, not sure which would be better. What thoughts or advise would y'all give to someone in this situation.

[Jay Hurst]

Quote from @Brad Blank:

Jay, the plan is to rent for long term and use some of the equity, since it is paid off, to buy other properties.  For the rehab, I'm thinking it will cost between 15-20K.  May be able get down from that if I do some of it.  The property will be turned back over to me by the end of the month and will have to go in and clean some stuff out.  I plan on getting a couple of contractors to come and walk it out to give me a line item bid. 

 @Brad Blank A good rule of thumb is borrower short term for short term needs, long term for long term needs. A HELOC (or any line of credit) are adjustable rates based on usually prime. In other words, the rate will go up and down. and in the last year it has been nothing but up. That is not a big deal if your plan is to pay of the line in 6 months or a year, but if you are looking to make down payments on new houses with the funds that line is not likely to be paid off quickly. That exposes you to rising rates.

A long term needs a long term solution which is a fixed rate mortgage. That way you are fixed on the high end, and if rates do drop you can always refi down the road. That costs money sure but if rates stay high you are not exposed to rates.