203KRefi loan vs HELOC in San Antonio, Texas

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Hello, we trying to turn our current residence into a SF rental property here in San Antonio, Texas. We hoping to make this happen within the next year but before doing so, me and wife would like to make some updates mainly renovating the master bath (same layout) and replace the carpets in the 3 bedrooms. As far as funding the projects, we were thinking of using a 203K Refi loan or a HELOC, tapping into our roughly $40,000 in positive equity after 4 years of ownership. We are first time homeowners so we have no experience using either of the funding options, so we would like to know your thoughts and experiences in a situation such as ours. Thank you reading!