Help with HELOC choice

[Jake Tiffany]

I'm planning on buying 3-4 houses this year and brrrring them. I have one rental property already and $50k cash. I should be able to get about $130-145k by taking a HELOC on my personal home and the rental, along with the cash. I've narrowed it down to two banks, below are the two scenarios. I'm curious which decision the community would choose and why.

Bank 1. My rental mortgage is with this bank. I owe $48k at 5.5%. They will give me $87k at 7.5% HELOC for my primary and rental equity. They will give my 75% LTV. With my cash, in total I'll have $135k.

The rental cash flows $190 per month after MTG, vacancy, repairs, CapEx and taxes.

Bank 2. I will have to use my cash to pay off the rental property for them to give me a HELOC on it. They are giving me 80% LTV so the total I'll have access to is $145k from the now paid off rental and my primary residence.

With the rental paid off it will cash flow $690 per month.

I’m leaning in one direction but since I’m new to all this I’d appreciate any feedback and opinions from more experienced minds. Thanks in advance everyone.