Cash Out vs HELOC.....Investment Property vs Second Home

[Eric Acevedo]

If some experts would read and offer their opinion on my situation that would be great! I need help understanding the key factors to consider to make the best decision. 

Is it better to tap equity of an investment property or second home to pay for renovations? Or is it better to use a HELOC?

Background: I own an investment property that cash flows about $400/month, it's on a 4% and about 9 years into a 30 year mortgage. 75% LTV is $151K. This property needs a new roof and some more reserves.....In 2020, I purchased a 2nd home to gut rehab. It now is on a 3.125% and 2 years into a 30 with $106K @ 75% LTV after renovations, which are now complete. No cash flow yet, potential Short term rental income later this year......I financed the renovation through personal credit cards, and now have a lower credit score due to the credit utilization...I want to pay that down and pay for new roof by tapping equity of one of these properties....

Option #1 - HELOC on investment property to pay off debt and put new roof on. Then Cash Out Refi 2nd Home to pay the HELOC.

Pros: Credit score increases by moving credit card debt into a HELOC....allows me to keep the equity, low rate and current amortization schedule for investment property, HELOC for future improvements. 

Cons: Lender Costs, Higher Payment on non-cash flowing 2nd Home. 

Option #2 - same as option #1, but HELOC on 2nd Home and Cash Out Refi Investment

Pros - better rate, 2nd home mortgage stays low, Investment Property remains positive cash flow with increased payment. 

Cons - Lender Costs, 

Option #3 - Cash-Out Investment Property 

Pros: lump sum, less Lender Fees, 2nd home mortgage stays same 

Cons: higher interest rate, mortgage clock restarts, higher monthly payment 

Option #4 - same as option 3, but with 2nd Home instead of investment property

Pros: Investment Property stays cash flow positive and remains on mortgage term

Cons: higher interest and monthly net loss on 2nd Home

Would the community offer some advice, or ask a few questions to help me make a good decision.