HELP! I didn't know about cash-out refi!

[Tyler Sanzone]

First post here!...

So to start things off I'm a 27M currently residing in NJ on the jersey shore. I purchased my first house (3 bed 2 bath) in August 2019 as a foreclosure for 192k with a conventional loan of 3.5%, 12% down with a sellers concession of about 8k to cover all closing costs and fees. The house was in ROUGH shape... (pet stains that ruined a good portion of the subfloor throughout the house), needless to say it was quite the job for my father and I to work on and update the house over a 3 month period. I invested about 10k in materials on the rehab and have since been slowly updating the house. 

Fast forward to FEB 2021: I was talking to a coworker and he mentioned that he recently refinanced his house with a very low rate. He told me that he put no money into the refinance and lowered his monthly payment which I found very intriguing. So I ended up refinancing my house on another 30 year fixed conventional loan at 2.625% with closing costs and fees wrapped in the loan. Appraisal came back at 272K with a loan of 175K so my LTV was low enough to remove the PMI as well.

Months later I found out about Biggerpockets. (I've always been interesting in real estate since my parents own a hotel and a few short term rentals) So since finding out about BP it's completely sparked something in me to learn more about real estate and invest to either cash flow or flip depending on the deal. I didn't realize it until recently but i've been HOUSE HACKING the last 2 years without even knowing it! I also found out more information about cash-out refinancing that I wish I knew about when I refinanced. The loan officer definitely offered it to me but I was so concerned about lowering my monthly payment instead of taking equity in cash to reinvest it. 

Due to an ongoing court issue, lawyer fees are adding up and I'm tight on money. I'd also like extra cash as reserves to purchase an investment property in the near future.

Question: Since I already have a great rate on my loan now, would it make more sense to apply for a HELOC and access the money as needed? OR do a cash out refi? I really don't want to have to pay closing costs all over again but I know HELOCs also have a higher interest rate and fees.

Any advice is greatly appreciated, thank you in advance!