How to fund the next property? HELP!

[Jenna Banaitis]

Looking to purchase our 3rd small multi family. Debating where I should get the money from. I have narrowed it down to taking it out of my own house; but not sure which way to go. I spoke to our lender and they suggested a HELOC OR a Cash Out Refi at 2.5%/15 year note. We only owe $140K on the home and it is worth about $420K. We would be taking $60K out of the house which still leaves us with plenty of equity. We are 9 years into a 20 year note. I know the logical thing would be a HELOC since there are no closing costs and you only pay for it if you use it, etc, BUT I hate having that as a loan that will come directly out of my monthly cash flow. Our properties are typically move in ready or close to it, and we hold onto them. I also hate the idea of a variable rate. Finally, if we did the cash out refi; our monthly payment only goes up $16. Obviously, I'm leaving toward the cash out refi but am wondering what all you smart people say?? Thanks so much!