Cash out refi or switch to 20-year mortgage?

[Steven Correale]

Looking for some advice. I am currently on a 30 year fixed at 3.625% for a multi-family that is also my primary residence. It was being used as an extended family for the last 4 years, one unit will start renting out at the beginning of 2021.

I am wondering what would be better financially, or if one is more advantageous from a tax perspective once it becomes a rental.

My options are to either do a cash out refinance (~$100k out) on a new 30 year mortgage at ~3% or keep the current balance and refinance to a 20 year mortgage at ~3% and get a new HELOC. Both options come out to the same monthly payment.

I have always payed extra towards my principal and have had the mind set to pay off my mortgage as soon as possible, but now that I will be collecting some rental income, would it be better to leverage?