BRRR of Line of Credi

[Lonnie ADams]

My wife and I have one rental. It is a house that is valued at around 130k and we owe 40k on it. Interest rate is 3.25% and we have about 7 years left on the note. We are currently flipping another property that we are doing in all cash with an investor so we can't/don't want to use it as collateral. The bank has given us a 80%LTV line of credit on the small rental.

Here is my question. Should we refinance that property and pull out the equity(BRRR) that we want or should we use the bank's line of credit? We are very new to the BRRR so any insight would be great. The mortgage on the rental is 610 includes all taxes/insurance. We pay water at 50.00 a month. Rent is 825 on the property. 825--125(vacancy/repairs)-mortage = about 50.00 cash flow.