Should we get a HELOC or refinance our rental property?

[Wayne Emminizer]

Morning folks.  I am new to Bigger Pockets but have loved every bit I have seem and learned so far.  Figured it was time to tap into the great wealth of knowledge here to get everyone's thoughts on an area that we are considering currently.

We have a rental property that we are wanting to use the equity on to fund additional deals. We have a 15 year note on it which we have about 12 years left on (to do all over again we would have done 30). Property value is $200K-225K and interest rate is 3.25%. Balance is about $109K. For a "non-owner occupied line of credit" we could borrow up to 80% LTV no problem. Main advantage there is we would preserve the low interest rate and remaining mortgage length and would have the LOC for when we need it and not have to pay if we don't need it but would cost more in terms of monthly expenditure when we use it because we would have that payment plus the mortgage.

By comparison, if we refinanced it for 30 years that would bring that rate up to ~5.5% and the payment with about the same cash out would be able the same as it is now with the 15 year note. Benefit is cash would be in hand and we should be able to refinance it into the LLC we have for the property/company instead of just in our name currently. Using that cash would cost no more than the current payment which is covered by the rent. Down side is the interest rate is higher and we would have a longer term.

I am not sure which direction is better. We are planning on using the BRRRR method on our deals going forward leaving little to nothing in the deal of our own cash. Would love to get everyone's thoughts.

Thanks in advance!

Wayne