Jay,Cash out refinance will Trump a Heloc in most cases right now due to a few things.

First time trying to purchase a home without funding myself. (401k loan N/A, HELOC on investment prop N/A)

It seems like you aren't working with the best team... they could have given you better advice.That said, I would consider potentially sticking it out unless the burden of the HELOC is too much. 

If she is relying on a HELOC to fund a new roof in a few years or on credit liquidity to facilitate any uh-ohs in the near-term, even a tiny decrease in property values will be devastating to her.

PenFed did a HELOC on a financed investment for me.

Reason for the LLC is I have 180k of equity in this home, additional 150k in retirement savings and another 60-80k in cash in my bank account and I want to make sure im protected if I rent it out and the renters sue me (im told that is a thing) - the nw home would become my new homestead2) Put a heloc on the home (im told I should be able to get about 100k on top of about 60-80k cash I have), keep it as my primary and use the money as a downpayment for flips and either payoff upon completion or put a tenant in and refinance out3) Refinance out 90-100k from my current home, mortgage payment would go up $300 per month ($3600 a year) and just use that money for flips/buy and holds or even just stick in the S&P at an average of 7-8% return so I am making 3-4% more on my money then it being in the houseI am super new to all of this, have been saving my pennies up for awhile and need to get going. 

HELOC and the rest traditional financing.

Interest rates will be 7.5 - 9%~HELOCs on an investment property typically come at a higher interest rate (13-15%~).

Like many, you can use a HELOC in the US but, for an investor, that's the same as paying cash.2.

All of the bank ive called only do helocs on residential homes and not second homes.