HELOC or Cash Out Refi for my scenario

[Kiran Vemula]

Hi,

My goal is to get another rental property with the proceeds. I have a rental property (town house) with equity 127,500(approximately).

I owned it for 4 years 11 months with interest rate 3.625.For Cash Out Refinance interest rate is 3.5.

75 % of LTV is $60,745.Cash in hand is 54,825 (60,745 – 5,920). Cash in hand may go down based on appraisal.

With Cash out Refi resetting the amortization schedule again from the beginning . 

For the same house with Heloc (80 % LTV) Max Cash I can get is $68,750. Interest rate is 4.750.

Please suggest which would be the best option to proceed.

Thanks in advance.