HELOC or Refinance??

[Anthony Oliver]

I need some help if anyone can help me with some advice to maneuver this situation...

I recently bought a duplex. I had to put 46k down. I borrowed a little money from my family, used my savings, and put 26k on credit cards with 0% interest for 12 months+. I would like to pay these credit cards off asap and possibly keep using them for the airline miles they offer until the interest rate starts. 

I was planning on doing a refinance 6 months after I purchased this property but that may not be the best decision. I have a 69% loan to value ratio and I am cash flowing 600$ a month or so. I am looking into a HELOC and getting as much money as I can to pay off the cards and use that money all over again for another property I can purchase with an FHA loan. I also forgot to mention a refinance is definitely out of the question because there is a prepayment penalty for the next 3 years. It is the interest payment for 6 months which equals around 5k. I also have an ARM that starts in 3 years so I need to refinance ASAP.

Is a HELOC the best idea in this situation? Or should I refinance in 6 months to a year and pay the prepayment penalty? Or should I wait the 3 years and then refinance?

Any ideas or help would be greatly appreciated. Thank you!