FHA Cashout Refinance vs Heloc

[Christopher John]

Purchased a 4 unit with 10k down @ 270k vacant that had significant deferred maintenance where the property was completely overgrown. I’ve put 15k into and a decent amount of sweat equity this past 15 months.

It’s now renting $4800 a month between all 4 units with two as furnished rentals. Normal long term tenant rates would be 4,000. I believe the property is worth anywhere from 400k-425k.

I want to pull out some of the equity to go purchase another property but don’t know what the best option is to move forward. I have a 2.7% interest rate & pmi now, and am afraid refinancing I will get an interest rate much higher now that it’s an investment property (4%)

It’s a decent amount of financial levers to pull here between the options & want to hear your perspective.