Financing options for starting out

[Christopher Peterson]

Newbie here - I've saved about 20k and want to start out with REI but i'm finding myself a bit cash poor. Most of the deals I see in my area require larger down payments and additional money after for renovations. I've been looking at financing options and was wondering about the relative merits of each. I have a condo which i've only owned for two years but has appreciated considerable (yay portland!) and I would like to take the equity out and put it to use.

Below is my math for calculating how much I could get with a Cash Out Refi.

Original Loan amount: 132,000
Current Loan balance: 124,951
Est. Current Value: 210,000
LTV w. 210k Appraisal: 59.5%
80% w. 210k Appraisal: 168,000
Total cash out: 43,049

Of course this doesn't include closing costs, appraisals, etc which would probably leave me with 40k total. Would a cash out refinance be worth it for this amount or would I do better to look at a HELOC?

Does a HELOC or refinance impact your financing options later for conventional loans?