Move into my rental as primary then refi or HELOC?

[Kelvin J.]

Hi all. Having bought my first property as an investment with 20% down, and tied up all my capital, I now cannot afford a second property with the MLS prices as they are in my area. I am in the process of becoming a wholesaler and building a marketing machine as there isn't any in my area supplying deals. MLS is at retail value and any deals are uninhabitable and /or going to cash buyers (160K+).

My intention is to do what i should have done from the outset, and move into the property as my primary residence, wait a year, and THEN get renters in (I would have had a much better loan and avoid capital gains should I need to sell it). Unfortunately I bought an REO and got cornered by underwriters into an investment loan when trying to buy the only deal at the time.

The lease is up in December and I want to move in and house hack. My question is this:

Should I (or even Can I) refinance my existing investment loan (4.3% with 2 points paid) to a primary at 3.8% to release the capital (costs involved) or go the Home Equity Line Of Credit route, if that's possible?

Thanks in advance, K