Cash out or HELOC on rental property?

[Vlad Maslov]

Hi everyone! What a great community! I am a first time poster newbie real estate investor form Delaware. 

We have one small 2 bed 1 bath rental house that used to be our primary residence, but now we are renting it out. It's worth around $140k(according to zillow) and we own $18k on 10year 3.5% note. Rent is $950, mortgage $512(taxes and insurance included) So, there is a good chunk of equity in that property. Our primary house is a fixer upper that I have been fixing little by little myself and over time that run into 25k credit card debt. I am not paying any interest on that $25k just yet, and recently been able to transfer it to another credit card with 0% APR for another year, didn't pay any transaction fee. Even though I am not paying interest on that $25k, but, just knowing that it is there makes me feel "uncomfortable" and I still need around $10-15k to finish renovation.

In short, goals:

1) pay off $25k credit cards balance

2) get some reserves around $10-15k(for materials) to finish renovation primary

3) if anything left, maybe get some cash for down payment for another rental property 

So I am trying to choose between Cash Out refi vs HELOC

I found two local banks that offer HELOCS on investment property. 70%LTV prime+2%(2.25%), got to pay $500-1500 closing fees.

Same banks offer cash out refi for rental properties: 75%LTV, 5.5-6% 30 year fixed, 3000-4500 closing fees

Seems like, if I go refi I can pull out around $83k ($105k(new loan) - $18k(current mortgage) - $4k(closing fee)=$83k

$83k - $25k(credit cards) - $15k(to finish rehab) = $43k (for next investment).

I am still researching and shopping around for other options, but refi seems to be a better option for right now. 

What would you do/recommend in this situation? Thanks