Should I heloc or cash out refi?

[Eric Phillips]

Hey folks,

I found a market I’d like to jump into so I want to get the ball rolling on my down payment.

Here’s what I have:
Bay Area based home - owe $222k @ 3.75% and it’s currently worth about $600k. 

I can cash out refi with no closing costs... maybe a lower interest rate soon. In the area I’m looking $20k is a 20% down payment. I have $5k cash for upgrades. I’m looking at nearly move in ready. 

I could also heloc. I’ve been researching them some but I’m not sure the risk is worth it?  

My fear is that I would buy once and not get the appraisal needed to get my funds back. I suppose that comes down to having the right team and comps being that this is out of state. 

If I can’t appraise at the value needed to get my initial investment out that would be bad news for a heloc right?  Essentially I’d be paying out of pocket to make that debt whole. 

Thanks for any help!