Equity stripping from rental property

[Fran Flanagan]

We kept our old home as a rental; we fixed it up nicely over the years we lived there. We have some equity in it and we also have a low interest rate. Basically, I have two questions.

I have an ARM that resets in 2019, currently at 2.875%. Currently my tenants' payments on my mortgage (even without extra) pay more on principal than interest. Am I correct in thinking that a HELOC is a better option than refinancing for a higher rate?

Any tips on the appraisal process? My area is popular with young professionsls, mostly older homes, in varying states on renovation. Renters and buyers want a nice place to live without fixing it themselves. This is reflected in the prices of recent sales... If you walk through the houses. If you look towards the high quality end of comps, what my place would get if I sold, I'd have just over 55% equity. I'm concerned that a lazy appraisal could come in closer to 60-65% equity.

I want to make sure I don't waste any money on fees with a conservative lender / lazy appraisal. Some lenders better than others in this regard?