To Cash Out Refinance or Not?

[Michael Ellison]

Hey all, just purchased a rental property in downtown Charleston that needs $50k in updates/renovations. I'm considering taking out this amount in the form of a HELOC on another rental property that I have ~$200k of equity in. Once we finish the reno on the new rental, cash out refi to pay off the HELOC. I'd likely have to give up a pretty killer rate of 2.75% currently locked in on the Charleston property with the cash-out refinance.

Any thoughts?