Cash out refinance or HELOC?

[Donna Xu]

It feels like I should have more cash reserve in case of losing my job or having an opportunity to buy another rental property. However, the home prices have increased even higher due to the lower interest rate. It is hard to find any good deals on the market. So if I do cash out refinance on my rental property, the cash might not get used to buy. But if I lose my job, the cash will help. Furthermore, refinancing has closing cost and it will increase the mortgage and lower the cash flow on the rental property. Shall I just open HELOC on my primary house in case I need cash? Is HELOC more risky than cash out refinance since you use your home as collateral? Thank you.

[Percy Matsunaga]

@ Donna 

I think the Heloc depends on the bank. My bank allows me to have an open line of credit on my Heloc and I can borrow and repay for 10 years. 
May the end of 10 years I can reapply for the same loan or extend into an actual loan and principal pay down. 

Cash out is good too, if you know you want that fixed amount to pay back monthly.