REFI CASH OUT VS HELOC TO BUY INVESTMENT PROPERTY

[Bryan Findlay]

We currently own a few single family rentals which both cash flow and have about $80-100K in equity each. Our intrest rate on these rentals are in the very low 3's, pretty good. I am wanting to take about 50-60K cash out refi on one property which will allow me to turn around and purchase another rental using that equity, none or little from my own pocket. The issue I am having is the new intrest rate will be about 4.5%. So yet... I would be cashing out with the refi to get another rental home, I would be buying a higher rate and closing costs. Is this not smart? As opposed to a HELOC or some other way which I have no clear understanding of? I am trying to use little to no money out of my pocket when doing this to land another rental. The cash-out refi process is more to my level of understanding so I'm comfortable with it but just worried it's a bad move considering what my scenario is? Please help, ideas, suggestions?