Cash-out refinance or HELOC

[Erjia Mao]

Hi everyone, I'm a new investor in Richmond, VA. I've been reading a lot of posts and blogs here. Now I'm ready to write my first post:) I have a rental property in Seattle that has been paid off with about $600k equity. I'd like to leverage part of the equity to expand my rental property portfolio in Richmond as the rentals here have better returns. I've been considering HELOC and cash-out refinance, but I'm not 100% sure which route to pursue, especially in the current environment. Looking for some advice from investors on BP forums.

1. First thing first, is it still safe to use leverage (specifically tapping into equity on rental property) to buy more rentals during this uncertain time?

2. I have done some research online on both and understand HELOC offers more flexibility, but the interest rate is usually higher than cash-out refinance. Are there any other pros/cons and risks of both that I should be aware of to help me make a well-informed decision between the two? Or, can I do both?

3. I have contacted a local bank in Seattle about HELOC. They can provide HELOC for up to $250k because it is a rental property. Does lenders usually have similar requirements for cash-out finance? I read that usually LTV can be up to 70-75% for cash-out refinance.

4. For cash-out refinance on my rental property in Seattle, shall I contact lenders in Seattle or Richmond, which is where I currently live in? Or, does it even matter?  If location does matter, I'd like to ask for some recommendations for lenders in Seattle or Richmond that offer cash-out refinance for investment property and have competitive rates.  

Thank you for reading my first post on BP!