Should I cash out refi or get a HELOC?

[Shalaye Camillo]

Hello my name is Shalaye, this is my first post. Thank you in advance for your replies and advice!

Question 1?

I own a 2 unit property in Boston. I live in one unit and Airbnb the other. I purchased the home 5 years ago for 370k, currently owe about 320k and the market value is about 650k. The mortgage loan I have has a great rate of 3.75% but requires me to refinance if I move out of the property. I do plan to move to another 2 unit or a single at some point and since rates are super low now, I'm wondering if it's best that I just refi now before rates inevitably rise? 

Question 2:

I want to tap my equity to invest in other real estate, preferably a hold, but open to a flip. I also want add a legal 2 bd apartment in my basement which may cost about 120k. If I can get about 220k-250k in equity, would it be better for me to do a cash out refi on my house or take a HELOC against the equity? Given what I'm trying to do, why would one option be better than the other?

Question 3:

Has anyone ever refinanced just to lower the mortgage rate then took a HELOC to tap into the equity? Are there generally any time or other restrictions in the newly refi'd mortgage that would prohibit this? (I know it may depend on the lender)

What do you think? Thanks!

Shalaye Camillo

Boston MA