Leveraging equity in rental for additional Buy and Hold

[Ali Parvizad]

Hi everyone! 

New to the website and first post on BP.  I would appreciate any guidance the community can provide, particularly those who have experience with using existing equity in a rental to acquire additional buy and hold rentals. 

I have 1 rental property looking to leverage some equity from to purchase additional buy and hold properties. PenFed pre approved for 90K HELOC and Cash Out Refi for 64K.

The HELOC:

• 1) takes 60 days to close
• 2) has a 80% LTV
• 3) 4.75% Variable
• 4) Will allow me to Cash Out Refi down the road (15 year terms) 
• 5) No Closing cost
• 6) Not sure if there is a seasoning period

The Refi:

•   1) 15 yr
•   2) 3.635
• 3) 75% LTV
•   4) Eliminates current cash flow, but pay off 6 years faster 
•   5) 5700 in closing costs

My goal is to find a way to use the equity to continue building my rental property portfolio for cashflow. I am interested in BRRRR with the HELOC to maintain velocity of cash or down payment with the Refi. Could use any guidance from those who have used either vehicle. I live in the DC metro area. Not much inventory for the amount of cash on hand. Would likely be looking to invest in Houston (family there involved in real estate) or Orlando.

all knowledge/guidance appreciated,

-Ali