HELOC or Cash out Refi for Down Payment on a Rental?

[Vickie Y.]

Hi guys, trying to decide the best way to go about this. 

Short version: 

Not enough liquid cash for down payment of 20% on Rental #3. Need about 35k. Have 90K equity in Rental #1 and 60k equity in Rental #2. Should I: a) HELOC one of the current rentals, b) take out an equity loan, c) do a cash out refi d) do nothing - continue saving until enough cash on hand.

Long version:

As stated, I have some equity built up in two of my out of state rentals. Both properties are currently on 30yr conventional loans at 4.875% and 5.25%. However, I made the mistake of not having enough liquid cash saved for the third rental. As most of my money is in the market, it seems silly to "sell low" in order to buy the third rental property. I've been looking into the idea of tapping into some of the equity built up, but am stuck on figuring out the best strategy. I would need about 35-40k for a down payment (20%) on a third rental. 

I think my options are: 

1) HELOC - draw down about 40k with the plan of paying this off quickly and aggressively, as the interest rate is adjustable

2) Home equity loan - loan at a fixed rate and term. From what I can see, loan terms can be as long as 10 years, so I would have the flexibility of paying this off slower if need be. 

3) Cash out refi - leaning away from this as I understand this would make my monthly payment go up. 

4) Do nothing - accumulate enough cash to jump back in - would sit out for about 6 - 12 months. 

Any insight would be greatly appreciated!! Thank you BP :)