Roofing is hurting my BRRRR

[Christopher B.]

We purchased our first Investment property, and it was a decent 4 unit deal. The seller, a realtor, was asking $99K, we offered $80K, and landed on $86K. Marker value was ~$108K. After our repairs and improvements, I estimate it is ~$128K. It cash flows $400 a month (after 5% CapEx, 5% Maintenance, 6% Vacancy, 10% PM), 2.17% of the 2% rule, and 11% Cap Rate if you want to use that on a Small Multi-family (I know some don't).

However, I had a roofer come over to look at a faux balcony that had rotted wood, that I wanted to change to a normal slope roof, to prevent issues in the future (I like when water runs off and away from the building).  The roofer, and a 2nd roofer both gave quotes to repair, and make the change in design, but both pointed out that the roof on the building needed immediate attention, due to some blown off shingles (I think those can be repaired), and worn out valleys (I assume requires complete replacement).  

We had an inspection, through the company we usually work with, but the person who has given thorough inspections in the past, was off, because he had fallen off of a building. With this, they sent someone else, and the company was at the time, no longer sending inspectors onto roofs. He used binoculars, and took pictures from the ground, which missed the valleys, because they weren't visible from the ground. I trusted the Inspector though. He stated the roof was at near life end, but we had some time. We put that into the CapEx budget, and were going to address it in maybe 5 years, or however long we could go. However, immediate was not the plan, nor was it in the budget, which has been used in it's entirety.

So, how should we fund this?  

Either way hurts the cash flow:  

-Option one - is we get a loan 10% (maybe lower) for the $12K roof, and pay it off in 7 years, at $204/month

-Option two - we get the loan above, but once we cash-out refinance, which we were going to do anyways, since the renovation is near done, and all units leased at market rent. We would then we pay off the loan, and put the roof onto a HELOC we have from our primary residence, since the HELOC will be paid off, or mostly paid off, after we cash-out refinance (we purchased and renovated on the HELOC). The HELOC is 4.75% currently, so over 10 years, the payment is $125.82, or over 20 years, $77.55. Using the HELOC, robs us of being able to use the $12K in the HELOC for next the next deal, but it protects our cash flow for now.

-Any other recommendations?