HELC or Cash Out Refi?

[Matt Anton]

I know this questions has been answer a few times but I think my situation is different enough to start a new post.  I plan to pull some money from my primary residence equity to buy my first rental property.  I should have 20% in the home and have a couple options:

1. Refi and drop the PMI, then get a HELC to buy the property.

2. Refi and drop the PMI, then take a loan against my 401K and eventually pay myself back.

3. Refi and cash out enough money to buy the rental.

I should save about $150-200 a month if I drop the PMI and refinance on my primary residence, which is automatic cash in my pocket. I would also gain two month of mortgage payments that I can bank for the rental purchase.

I would appreciate any help you can lend!