HELOC or HE Loan what is best option for this project?

[Daniel Hollar]

House was built in 1979 currently a 3/3 SFH and a 1/1 apartment. It has had many self done additions over the years so going to take about 250K to do the remodel.When all said and done will be a mostly all new 3/3 plus 1/1 in-law suite, and two apartments 1/1 and 2/2. It should cash flow between 2-3K+ a month. ARV somewhere around 1.1M.

I currently do not have a loan against this property. 

What is best option to fund: 

30yr 400K fixed rate loan with about 4% interest (250K reno and 150k to make payments until we get renters) 

or 

HELOC still 400k but with floating interest initially about 3% (10draw/20pay)

Thoughts?