We Can Pay Cash--should we do it?

[Khursten Cornwall]

There's a property available in our area with a tiny home on about a half acre that we could afford to buy outright using money from our HELOC. It needs some work but we would most likely have enough in the HELOC left over to do the necessary work.

I'm wondering if it would be better to just keep the property free & clear and use our rental profits from it to pay the HELOC off over time, or is it better to do a cash out refinance on the new property after making updates and use the money to pay off the HELOC?

I'm thinking the latter? Because a)the rate is variable on HELOCs, but not on the refinance loan? And b) potentially we could use the HELOC again for another property?