HELOC or Cash-out refi

[Sam LaGrassa]

I am getting my feet wet in the world of real-estate investing. I own a condo in which my wife and I reside. We bought the property for 820K with a 80% 7/1 ARM at 2.95%; 10% HELOC and 10% down. I have since paid off the HELOC. The house on redfin is now 1,090,000 with a remaining mortgage amount of $600K meaning I have about 500K in equity in this property. My wife and I can save about 120K a year. I plan to buy rental property each year on a rinse and repeat process. Please advise what you would recommend and what types of properties to invest in. I am limited to buying in boston and will primarily look for properties will see home value increase by 10% per year. DO you recommend a HELOC to fund my next property or a cash out refi?