Best method for pulling out equity

[Jacob Edmond]

I recently bought my second home that I am living in and heavily renovating. We bought it as is and it appraised for $12000 more than we paid and we are currently changing the layout of the main living spaces and doing a full gut and reno on the kitchen, losing all wall paneling. Replacing with drywall, bamboo floors in the kitchen and family that lacked wood, and all new trims, etc. We are spending about $20,000 all said and done, and based on recent comps, I am expecting the value to go up to about $160k, possibly a little higher depending on the market.

My question is, once I finish the renovations, and I am past the 6 month seasoning period, should I be trying to refinance for 80% of the ARV, and hopefully get out of PMI (currently it is financed FHA), or should I be looking for a HELOC? In the case of a HELOC can I just request a new appraisal from the bank to assess to ARV?

Any advice is appreciated!