Would you go with a HELOC or mortgage?

[Mar Now]

I have one rental property with no mortgage. I want to have funds available for my next deal so I went to try to get a HELOC on the rental. One bank, a credit union with which I had an account for many years, offered a type of HELOC at 6%. Another bank that I have a checking account with doesn't offer HELOCs on rental properties, but offered a mortgage at 5.25%. Each will waive closing fees because of my other accounts at those banks.

I can see that with the HELOC I would only take out the money I needed and save interest that way, but with the mortgage I suppose I can reinvest the money not being used on new house deals somewhere else at a higher return than 5.25.

Any other opinions on what is the best way to do this?