Stick with HELOC or cash out refi?

[Mike B.]

Hello, 

I started on my real estate path this year. Since June, I have purchased 5 buildings (7 units), all purchased with a HELOC that I have on my own residence. Today that rate is at 5% (up from 4.5% when I opened it in April). All properties are 58k or less.

I am able to consistently pay down the HELOC using my personal paychecks and some early rental income, and I am making progress, though there is a good balance currently.

I'm thinking about changing these all to fixed 30 year mortgages. Shopping rates seem to be around 5.3-5.6%, closing costs/points around 3-4k. As for appraisals, it's early, so I realize I won't  be able to pull out a ton right now. For example, the preliminary appraisal for one property for which I paid 54k, , is around 67k, according to one lender running comps. (I feel like it could be around 70-75k but we'll see). 

Cash flow can handle the mortgages.

I have no problem paying down the HELOC as I go, but based on suspected rising rates I don't know if it would be worth to fix it to a higher rate mortgage now and free up cash to buy more properties (My plan is to just keep growing and scaling). Or just keep on the current path of paying down the HELOC on these properties and use mortgages to buy new properties in the future.

Thanks in advance!