HELOC, Sell or Refinance

[Lennie Holland]

Trying to decide what to do with a rental property I have. A quick description of the property is 

SFR 3/2 - Cape Cod, 2 car garage, fenced in yard

Loan 24yr @ 4.25%, balance = 150K, FMV 210K

Property rents for $1475, CF $326 - 50% maintenance = pocket $163

Property will need new roof within next 5 years

I would like access this equity for future RE endeavors. If we sell it in 2016 we would not have to pay capital gains taxes. Not to mention the house is in a hot market so no problem selling.

Of course the property is also easy to rent but it doesn't make the 2% rule, or 1%. However it does cash flow, so I could take a HELOC out for 90% and have a decent open credit line for flipping projects. So we would just keep it indefinitely.

And then there's refinancing which the banks I've talked with so far will only go 75% FMV and they really can't beat my current interest rate by much. So I really don't feel as if this option is worth anything to me.

What would you do if you wanted capital? Thank you in advance for your thoughts.