Cash Out Refi or Credit Union HELOC

[Matthew K.]

Hey Team, I have a 2nd in PA with approximately $275K in equity. I am approved for a 80% LTV HELOC, rate moved from 4% to 4.75% on 7/1 and will continue to move with the fed. I am also approved for a 75% LTV cash out refi at 5.875%.

I intend to use the proceeds to invest these funds in the Charlotte market, likely 3 to 4 unit multi's. Not much difference in cash availability between the 2 products. Obvious rate stability in the cash out refi has me leaning that direction. Only reason I am considering the HELOC is the great rate, maintaining current 4.25% on 15 year conventional with 11 years left.

Please provide me perspective that I am overlooking or should be considering.  What is the best way to compare these two options?

Target is to cash flow $15k monthly in the next 7 years.  

Much appreciated,

Matt